Pair Correlation Between Whirlpool and Toro

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

Pair Volatility

Considering 30-days investment horizon, Whirlpool Corporation is expected to generate 1.15 times more return on investment than Toro. However, Whirlpool is 1.15 times more volatile than The Toro Company. It trades about 0.01 of its potential returns per unit of risk. The Toro Company is currently generating about -0.16 per unit of risk. If you would invest  16,665  in Whirlpool Corporation on January 22, 2018 and sell it today you would lose (36.00)  from holding Whirlpool Corporation or give up 0.22% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Whirlpool and Toro
0.71

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 Toro Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on The Toro 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 Toro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Toro has no effect on the direction of Whirlpool i.e. Whirlpool and Toro go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Whirlpool

  
0 

Risk-Adjusted Performance

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

The Toro

  
0 

Risk-Adjusted Performance

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