Correlation Between PARKER and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between PARKER HANNIFIN P 41 and Dow Jones Industrial, you can compare the effects of market volatilities on PARKER and Dow Jones 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 PARKER with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKER and Dow Jones.
Diversification Opportunities for PARKER and Dow Jones
Average diversification
The 3 months correlation between PARKER and Dow is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding PARKER HANNIFIN P 41 and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and PARKER 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 PARKER HANNIFIN P 41 are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of PARKER i.e., PARKER and Dow Jones go up and down completely randomly.
Pair Corralation between PARKER and Dow Jones
Assuming the 90 days trading horizon PARKER HANNIFIN P 41 is expected to generate 1.98 times more return on investment than Dow Jones. However, PARKER is 1.98 times more volatile than Dow Jones Industrial. It trades about 0.07 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.0 per unit of risk. If you would invest 8,284 in PARKER HANNIFIN P 41 on September 13, 2024 and sell it today you would earn a total of 70.00 from holding PARKER HANNIFIN P 41 or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 54.55% |
| Values | Daily Returns |
PARKER HANNIFIN P 41 vs. Dow Jones Industrial
Performance |
| Timeline |
PARKER and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
PARKER HANNIFIN P 41
Pair trading matchups for PARKER
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with PARKER and Dow Jones
The main advantage of trading using opposite PARKER and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKER position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| PARKER vs. Nascent Wine | PARKER vs. FactSet Research Systems | PARKER vs. Treasury Wine Estates | PARKER vs. ServiceNow |
| Dow Jones vs. Hurco Companies | Dow Jones vs. Tyson Foods | Dow Jones vs. MYR Group | Dow Jones vs. Cannae Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |