Correlation Between INGERSOLL and WT Offshore
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By analyzing existing cross correlation between INGERSOLL RAND GLOBAL HLDG and WT Offshore, you can compare the effects of market volatilities on INGERSOLL and WT Offshore 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 INGERSOLL with a short position of WT Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of INGERSOLL and WT Offshore.
Diversification Opportunities for INGERSOLL and WT Offshore
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INGERSOLL and WTI is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding INGERSOLL RAND GLOBAL HLDG and WT Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WT Offshore and INGERSOLL 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 INGERSOLL RAND GLOBAL HLDG are associated (or correlated) with WT Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WT Offshore has no effect on the direction of INGERSOLL i.e., INGERSOLL and WT Offshore go up and down completely randomly.
Pair Corralation between INGERSOLL and WT Offshore
Assuming the 90 days trading horizon INGERSOLL RAND GLOBAL HLDG is expected to generate 0.08 times more return on investment than WT Offshore. However, INGERSOLL RAND GLOBAL HLDG is 12.3 times less risky than WT Offshore. It trades about 0.05 of its potential returns per unit of risk. WT Offshore is currently generating about -0.06 per unit of risk. If you would invest 9,513 in INGERSOLL RAND GLOBAL HLDG on September 26, 2024 and sell it today you would earn a total of 160.00 from holding INGERSOLL RAND GLOBAL HLDG or generate 1.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 92.8% |
Values | Daily Returns |
INGERSOLL RAND GLOBAL HLDG vs. WT Offshore
Performance |
Timeline |
INGERSOLL RAND GLOBAL |
WT Offshore |
INGERSOLL and WT Offshore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with INGERSOLL and WT Offshore
The main advantage of trading using opposite INGERSOLL and WT Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INGERSOLL position performs unexpectedly, WT Offshore 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 WT Offshore will offset losses from the drop in WT Offshore's long position.INGERSOLL vs. WT Offshore | INGERSOLL vs. Insteel Industries | INGERSOLL vs. National Beverage Corp | INGERSOLL vs. Highway Holdings Limited |
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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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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