Correlation Between SOCGEN and Parker Hannifin
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By analyzing existing cross correlation between SOCGEN 475 14 SEP 28 and Parker Hannifin, you can compare the effects of market volatilities on SOCGEN 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 SOCGEN with a short position of Parker Hannifin. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOCGEN and Parker Hannifin.
Diversification Opportunities for SOCGEN and Parker Hannifin
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SOCGEN and Parker is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding SOCGEN 475 14 SEP 28 and Parker Hannifin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parker Hannifin and SOCGEN 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 SOCGEN 475 14 SEP 28 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 SOCGEN i.e., SOCGEN and Parker Hannifin go up and down completely randomly.
Pair Corralation between SOCGEN and Parker Hannifin
Assuming the 90 days trading horizon SOCGEN 475 14 SEP 28 is expected to generate 0.2 times more return on investment than Parker Hannifin. However, SOCGEN 475 14 SEP 28 is 5.04 times less risky than Parker Hannifin. It trades about 0.14 of its potential returns per unit of risk. Parker Hannifin is currently generating about -0.04 per unit of risk. If you would invest 9,785 in SOCGEN 475 14 SEP 28 on December 30, 2024 and sell it today you would earn a total of 87.00 from holding SOCGEN 475 14 SEP 28 or generate 0.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 27.42% |
Values | Daily Returns |
SOCGEN 475 14 SEP 28 vs. Parker Hannifin
Performance |
Timeline |
SOCGEN 475 14 |
Parker Hannifin |
SOCGEN and Parker Hannifin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SOCGEN and Parker Hannifin
The main advantage of trading using opposite SOCGEN and Parker Hannifin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOCGEN 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.SOCGEN vs. Lithium Americas Corp | SOCGEN vs. Rackspace Technology | SOCGEN vs. Webus International Limited | SOCGEN vs. Joint Stock |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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