Correlation Between Applied Industrial and Anixter International
Can any of the company-specific risk be diversified away by investing in both Applied Industrial and Anixter 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 Applied Industrial and Anixter International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Industrial Technologies and Anixter International, you can compare the effects of market volatilities on Applied Industrial and Anixter 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 Applied Industrial with a short position of Anixter International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Industrial and Anixter International.
Diversification Opportunities for Applied Industrial and Anixter International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Applied and Anixter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Applied Industrial Technologie and Anixter International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anixter International and Applied Industrial 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 Applied Industrial Technologies are associated (or correlated) with Anixter International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anixter International has no effect on the direction of Applied Industrial i.e., Applied Industrial and Anixter International go up and down completely randomly.
Pair Corralation between Applied Industrial and Anixter International
If you would invest (100.00) in Anixter International on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Anixter International or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Applied Industrial Technologie vs. Anixter International
Performance |
| Timeline |
| Applied Industrial |
| Anixter International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Applied Industrial and Anixter International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Industrial and Anixter International
The main advantage of trading using opposite Applied Industrial and Anixter International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Industrial position performs unexpectedly, Anixter 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 Anixter International will offset losses from the drop in Anixter International's long position.| Applied Industrial vs. Core Main | Applied Industrial vs. WW Grainger | Applied Industrial vs. DXP Enterprises | Applied Industrial vs. SiteOne Landscape Supply |
| Anixter International vs. Seadrill Limited | Anixter International vs. Tenaris SA ADR | Anixter International vs. Summit Materials | Anixter International vs. Drilling Tools International |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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