Correlation Between Park Ohio and Tritent International

Can any of the company-specific risk be diversified away by investing in both Park Ohio and Tritent International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Park Ohio and Tritent International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Park Ohio Holdings and Tritent International Agriculture, you can compare the effects of market volatilities on Park Ohio and Tritent International 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 Park Ohio with a short position of Tritent International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Ohio and Tritent International.

Diversification Opportunities for Park Ohio and Tritent International

0.0

Correlation Coefficient

Park Ohio  Tritent International

Pay attention - limited upside

The 3 months correlation between Park and Tritent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Park Ohio Holdings and Tritent International Agricult in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tritent International and Park Ohio 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 Park Ohio Holdings are associated (or correlated) with Tritent International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tritent International has no effect on the direction of Park Ohio i.e., Park Ohio and Tritent International go up and down completely randomly.

Pair Corralation between Park Ohio and Tritent International

If you would invest  8.20  in Tritent International Agriculture on October 6, 2024 and sell it today you would earn a total of  0.00  from holding Tritent International Agriculture or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Park Ohio Holdings  vs.  Tritent International Agricult

Park Ohio Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Park Ohio Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Tritent International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tritent International Agriculture has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, Tritent International is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Park Ohio and Tritent International

The main advantage of trading using opposite Park Ohio and Tritent International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Ohio position performs unexpectedly, Tritent International 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 Tritent International will offset losses from the drop in Tritent International's long position.

The idea behind Park Ohio Holdings and Tritent International Agriculture pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 CEOs Directory module to screen CEOs from public companies around the world.