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 Corporation is expected to generate 0.77 times more return on investment than Middleby. However, Whirlpool Corporation is 1.3 times less risky than Middleby. It trades about 0.23 of its potential returns per unit of risk. The Middleby Corporation is currently generating about 0.0 per unit of risk. If you would invest  17,269  in Whirlpool Corporation on September 21, 2017 and sell it today you would earn a total of  977  from holding Whirlpool Corporation or generate 5.66% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Whirlpool and Middleby
0.77

Parameters

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

Diversification

Poor 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

  
15 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Whirlpool Corporation are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.

The Middleby

  
0 

Risk-Adjusted Performance

Over the last 30 days The Middleby Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.