Correlation Between SP 500 and GARDNER DENVER

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Can any of the company-specific risk be diversified away by investing in both SP 500 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 SP 500 and GARDNER DENVER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SP 500 ETF and GARDNER DENVER INC, you can compare the effects of market volatilities on SP 500 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 SP 500 with a short position of GARDNER DENVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of SP 500 and GARDNER DENVER.

Diversification Opportunities for SP 500 and GARDNER DENVER

0.0
  Correlation Coefficient

Pay attention - limited upside

The 24 months correlation between SP 500 and GARDNER is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SP 500 ETF 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 SP 500 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 SP 500 ETF 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 SP 500 i.e., SP 500 and GARDNER DENVER go up and down completely randomly.

Pair Corralation between SP 500 and GARDNER DENVER

If you would invest  31,011  in SP 500 ETF on May 18, 2022 and sell it today you would earn a total of  8,424  from holding SP 500 ETF or generate 27.16% return on investment over 90 days.
Time Period24 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

SP 500 ETF  vs.  GARDNER DENVER INC

 Performance (%) 
       Timeline  
SP 500 ETF 
SP 500 Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in SP 500 ETF are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, SP 500 is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

SP 500 Price Channel

GARDNER DENVER INC 
GARDNER Performance
0 of 100
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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

SP 500 and GARDNER DENVER Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SP 500 and GARDNER DENVER

The main advantage of trading using opposite SP 500 and GARDNER DENVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SP 500 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.

SP 500 ETF

Pair trading matchups for SP 500

The idea behind SP 500 ETF 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.
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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