Correlation Between KIMCO and Parker Hannifin
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By analyzing existing cross correlation between KIMCO RLTY P and Parker Hannifin, you can compare the effects of market volatilities on KIMCO and Parker Hannifin 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 KIMCO with a short position of Parker Hannifin. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIMCO and Parker Hannifin.
Diversification Opportunities for KIMCO and Parker Hannifin
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KIMCO and Parker is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding KIMCO RLTY P and Parker Hannifin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parker Hannifin and KIMCO 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 KIMCO RLTY P are associated (or correlated) with Parker Hannifin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parker Hannifin has no effect on the direction of KIMCO i.e., KIMCO and Parker Hannifin go up and down completely randomly.
Pair Corralation between KIMCO and Parker Hannifin
Assuming the 90 days trading horizon KIMCO RLTY P is expected to under-perform the Parker Hannifin. In addition to that, KIMCO is 6.92 times more volatile than Parker Hannifin. It trades about -0.1 of its total potential returns per unit of risk. Parker Hannifin is currently generating about -0.1 per unit of volatility. If you would invest 69,932 in Parker Hannifin on September 13, 2024 and sell it today you would lose (1,334) from holding Parker Hannifin or give up 1.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
KIMCO RLTY P vs. Parker Hannifin
Performance |
| Timeline |
| KIMCO RLTY P |
| Parker Hannifin |
KIMCO and Parker Hannifin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIMCO and Parker Hannifin
The main advantage of trading using opposite KIMCO and Parker Hannifin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIMCO position performs unexpectedly, Parker Hannifin 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 Parker Hannifin will offset losses from the drop in Parker Hannifin's long position.| KIMCO vs. AEP TEX INC | KIMCO vs. US BANK NATIONAL | KIMCO vs. Recursion Pharmaceuticals | KIMCO vs. SoundHound AI |
| Parker Hannifin vs. Illinois Tool Works | Parker Hannifin vs. Pentair PLC | Parker Hannifin vs. Emerson Electric | Parker Hannifin vs. Smith AO |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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