Correlation Between 23291KAJ4 and Timken
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By analyzing existing cross correlation between DH EUROPE FINANCE and Timken Company, you can compare the effects of market volatilities on 23291KAJ4 and Timken and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in 23291KAJ4 with a short position of Timken. Check out your portfolio center. Please also check ongoing floating volatility patterns of 23291KAJ4 and Timken.
Diversification Opportunities for 23291KAJ4 and Timken
Weak diversification
The 3 months correlation between 23291KAJ4 and Timken is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding DH EUROPE FINANCE and Timken Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timken Company and 23291KAJ4 is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on DH EUROPE FINANCE are associated (or correlated) with Timken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timken Company has no effect on the direction of 23291KAJ4 i.e., 23291KAJ4 and Timken go up and down completely randomly.
Pair Corralation between 23291KAJ4 and Timken
Assuming the 90 days trading horizon DH EUROPE FINANCE is expected to generate 0.19 times more return on investment than Timken. However, DH EUROPE FINANCE is 5.26 times less risky than Timken. It trades about 0.18 of its potential returns per unit of risk. Timken Company is currently generating about -0.07 per unit of risk. If you would invest 7,923 in DH EUROPE FINANCE on September 2, 2024 and sell it today you would earn a total of 206.00 from holding DH EUROPE FINANCE or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
DH EUROPE FINANCE vs. Timken Company
Performance |
| Timeline |
| DH EUROPE FINANCE |
| Timken Company |
23291KAJ4 and Timken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 23291KAJ4 and Timken
The main advantage of trading using opposite 23291KAJ4 and Timken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 23291KAJ4 position performs unexpectedly, Timken can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Timken will offset losses from the drop in Timken's long position.| 23291KAJ4 vs. Timken Company | 23291KAJ4 vs. Mativ Holdings | 23291KAJ4 vs. Postal Realty Trust | 23291KAJ4 vs. Tower One Wireless |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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