Correlation Between PARKER and Summit Materials
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By analyzing existing cross correlation between PARKER HANNIFIN P MEDIUM and Summit Materials, you can compare the effects of market volatilities on PARKER and Summit Materials 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 Summit Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKER and Summit Materials.
Diversification Opportunities for PARKER and Summit Materials
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PARKER and Summit is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding PARKER HANNIFIN P MEDIUM and Summit Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Materials 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 MEDIUM are associated (or correlated) with Summit Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Materials has no effect on the direction of PARKER i.e., PARKER and Summit Materials go up and down completely randomly.
Pair Corralation between PARKER and Summit Materials
Assuming the 90 days trading horizon PARKER HANNIFIN P MEDIUM is expected to under-perform the Summit Materials. In addition to that, PARKER is 1.33 times more volatile than Summit Materials. It trades about -0.15 of its total potential returns per unit of risk. Summit Materials is currently generating about 0.33 per unit of volatility. If you would invest 5,059 in Summit Materials on October 23, 2024 and sell it today you would earn a total of 156.00 from holding Summit Materials or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 84.21% |
| Values | Daily Returns |
PARKER HANNIFIN P MEDIUM vs. Summit Materials
Performance |
| Timeline |
| PARKER HANNIFIN P |
| Summit Materials |
PARKER and Summit Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKER and Summit Materials
The main advantage of trading using opposite PARKER and Summit Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKER position performs unexpectedly, Summit Materials 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 Summit Materials will offset losses from the drop in Summit Materials' long position.| PARKER vs. The Gap, | PARKER vs. Summit Environmental | PARKER vs. Universal Stainless Alloy | PARKER vs. Robix Environmental Technologies |
| Summit Materials vs. Martin Marietta Materials | Summit Materials vs. Vulcan Materials | Summit Materials vs. United States Lime | Summit Materials vs. James Hardie Industries |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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