Pair Correlation Between Whirlpool and Middleby

This module allows you to analyze existing cross correlation between Whirlpool Corporation and The Middleby Corporation. You can compare the effects of market volatilities on Whirlpool and Middleby 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 Whirlpool with a short position of Middleby. See also your portfolio center. Please also check ongoing floating volatility patterns of Whirlpool and Middleby.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Whirlpool Corp.  vs   The Middleby Corp.
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Whirlpool is expected to generate 3.55 times less return on investment than Middleby. But when comparing it to its historical volatility, Whirlpool Corporation is 1.25 times less risky than Middleby. It trades about 0.18 of its potential returns per unit of risk. The Middleby Corporation is currently generating about 0.52 of returns per unit of risk over similar time horizon. If you would invest  10,916  in The Middleby Corporation on November 12, 2017 and sell it today you would earn a total of  1,582  from holding The Middleby Corporation or generate 14.49% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Whirlpool and Middleby
0.9

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Whirlpool Corp. and The Middleby Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on The Middleby and Whirlpool 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 Whirlpool Corporation are associated (or correlated) with Middleby. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Middleby has no effect on the direction of Whirlpool i.e. Whirlpool and Middleby go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Whirlpool

  
12 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Whirlpool Corporation are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days.

The Middleby

  
34 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Middleby Corporation are ranked lower than 34 (%) of all global equities and portfolios over the last 30 days.