Correlation Between Universal Stainless and PARKER
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By analyzing existing cross correlation between Universal Stainless Alloy and PARKER HANNIFIN P MEDIUM, you can compare the effects of market volatilities on Universal Stainless and PARKER 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 Universal Stainless with a short position of PARKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Stainless and PARKER.
Diversification Opportunities for Universal Stainless and PARKER
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Universal and PARKER is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Universal Stainless Alloy and PARKER HANNIFIN P MEDIUM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKER HANNIFIN P and Universal Stainless 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 Universal Stainless Alloy are associated (or correlated) with PARKER. 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 P has no effect on the direction of Universal Stainless i.e., Universal Stainless and PARKER go up and down completely randomly.
Pair Corralation between Universal Stainless and PARKER
Given the investment horizon of 90 days Universal Stainless Alloy is expected to generate 0.51 times more return on investment than PARKER. However, Universal Stainless Alloy is 1.96 times less risky than PARKER. It trades about 0.59 of its potential returns per unit of risk. PARKER HANNIFIN P MEDIUM is currently generating about -0.01 per unit of risk. If you would invest 4,368 in Universal Stainless Alloy on November 3, 2024 and sell it today you would earn a total of 131.00 from holding Universal Stainless Alloy or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 83.33% |
| Values | Daily Returns |
Universal Stainless Alloy vs. PARKER HANNIFIN P MEDIUM
Performance |
| Timeline |
| Universal Stainless Alloy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| PARKER HANNIFIN P |
Universal Stainless and PARKER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Stainless and PARKER
The main advantage of trading using opposite Universal Stainless and PARKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Stainless position performs unexpectedly, PARKER 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 will offset losses from the drop in PARKER's long position.| Universal Stainless vs. Olympic Steel | Universal Stainless vs. Outokumpu Oyj ADR | Universal Stainless vs. Usinas Siderurgicas de | Universal Stainless vs. POSCO Holdings |
| PARKER vs. AEP TEX INC | PARKER vs. US BANK NATIONAL | PARKER vs. Valley National Bancorp | PARKER vs. LightPath Technologies |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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