Correlation Between INTNED and Parker Hannifin

Can any of the company-specific risk be diversified away by investing in both INTNED and Parker Hannifin 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 INTNED and Parker Hannifin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between INTNED 4252 28 MAR 33 and Parker Hannifin, you can compare the effects of market volatilities on INTNED and Parker Hannifin 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 INTNED with a short position of Parker Hannifin. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTNED and Parker Hannifin.

Diversification Opportunities for INTNED and Parker Hannifin

-0.58

Correlation Coefficient

INTNED  Parker Hannifin

Excellent diversification

The 3 months correlation between INTNED and Parker is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding INTNED 4252 28 MAR 33 and Parker Hannifin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parker Hannifin and INTNED 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 INTNED 4252 28 MAR 33 are associated (or correlated) with Parker Hannifin. 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 has no effect on the direction of INTNED i.e., INTNED and Parker Hannifin go up and down completely randomly.

Pair Corralation between INTNED and Parker Hannifin

Assuming the 90 days trading horizon INTNED 4252 28 MAR 33 is expected to under-perform the Parker Hannifin. In addition to that, INTNED is 1.39 times more volatile than Parker Hannifin. It trades about -0.04 of its total potential returns per unit of risk. Parker Hannifin is currently generating about 0.07 per unit of volatility. If you would invest  63,773  in Parker Hannifin on September 19, 2024 and sell it today you would earn a total of  2,826  from holding Parker Hannifin or generate 4.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	92.68%
Values	Daily Returns

INTNED 4252 28 MAR 33  vs.  Parker Hannifin

INTNED 4252 28

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTNED 4252 28 MAR 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for INTNED 4252 28 MAR 33 investors.

Parker Hannifin

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Parker Hannifin are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal technical indicators, Parker Hannifin may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with INTNED and Parker Hannifin

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

The idea behind INTNED 4252 28 MAR 33 and Parker Hannifin 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.