Correlation Between Perficient and GARDNER DENVER

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Can any of the company-specific risk be diversified away by investing in both Perficient and GARDNER DENVER 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 Perficient and GARDNER DENVER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perficient and GARDNER DENVER INC, you can compare the effects of market volatilities on Perficient and GARDNER DENVER 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 Perficient with a short position of GARDNER DENVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perficient and GARDNER DENVER.

Diversification Opportunities for Perficient and GARDNER DENVER

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Perficient and GARDNER is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Perficient and GARDNER DENVER INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GARDNER DENVER INC and Perficient 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 Perficient are associated (or correlated) with GARDNER DENVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GARDNER DENVER INC has no effect on the direction of Perficient i.e., Perficient and GARDNER DENVER go up and down completely randomly.

Pair Corralation between Perficient and GARDNER DENVER

If you would invest  3,348  in Perficient on April 5, 2022 and sell it today you would earn a total of  5,677  from holding Perficient or generate 169.56% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Perficient  vs.  GARDNER DENVER INC

 Performance (%) 
      Timeline 
Perficient 
Perficient Performance
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Over the last 90 days Perficient has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of sluggish performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in August 2022. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Perficient Price Channel

GARDNER DENVER INC 
GARDNER Performance
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Over the last 90 days GARDNER DENVER INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, GARDNER DENVER is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Perficient and GARDNER DENVER Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Perficient and GARDNER DENVER

The main advantage of trading using opposite Perficient and GARDNER DENVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perficient position performs unexpectedly, GARDNER DENVER 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 GARDNER DENVER will offset losses from the drop in GARDNER DENVER's long position.
The idea behind Perficient and GARDNER DENVER INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

GARDNER DENVER INC

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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against GARDNER DENVER as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. GARDNER DENVER's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, GARDNER DENVER's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to GARDNER DENVER INC.
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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