Correlation Between Park Ohio and MARTIN
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By analyzing existing cross correlation between Park Ohio Holdings and MARTIN MARIETTA MATLS, you can compare the effects of market volatilities on Park Ohio and MARTIN 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 MARTIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Ohio and MARTIN.
Diversification Opportunities for Park Ohio and MARTIN
Average diversification
The 3 months correlation between Park and MARTIN is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Park Ohio Holdings and MARTIN MARIETTA MATLS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARTIN MARIETTA MATLS 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 MARTIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARTIN MARIETTA MATLS has no effect on the direction of Park Ohio i.e., Park Ohio and MARTIN go up and down completely randomly.
Pair Corralation between Park Ohio and MARTIN
Given the investment horizon of 90 days Park Ohio Holdings is expected to under-perform the MARTIN. In addition to that, Park Ohio is 4.47 times more volatile than MARTIN MARIETTA MATLS. It trades about -0.57 of its total potential returns per unit of risk. MARTIN MARIETTA MATLS is currently generating about -0.3 per unit of volatility. If you would invest 9,726 in MARTIN MARIETTA MATLS on September 30, 2024 and sell it today you would lose (179.00) from holding MARTIN MARIETTA MATLS or give up 1.84% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 71.43% |
Values | Daily Returns |
Park Ohio Holdings vs. MARTIN MARIETTA MATLS
Performance |
Timeline |
Park Ohio Holdings |
MARTIN MARIETTA MATLS |
Park Ohio and MARTIN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Park Ohio and MARTIN
The main advantage of trading using opposite Park Ohio and MARTIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Ohio position performs unexpectedly, MARTIN 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 MARTIN will offset losses from the drop in MARTIN's long position.Park Ohio vs. Hurco Companies | Park Ohio vs. Enerpac Tool Group | Park Ohio vs. China Yuchai International | Park Ohio vs. Luxfer Holdings PLC |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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