Correlation Between Oshkosh and Ingersoll Rand

Can any of the company-specific risk be diversified away by investing in both Oshkosh and Ingersoll Rand 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 Oshkosh and Ingersoll Rand into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oshkosh and Ingersoll Rand, you can compare the effects of market volatilities on Oshkosh and Ingersoll Rand 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 Oshkosh with a short position of Ingersoll Rand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshkosh and Ingersoll Rand.

Diversification Opportunities for Oshkosh and Ingersoll Rand

0.79

Correlation Coefficient

Oshkosh  Ingersoll Rand

Poor diversification

The 3 months correlation between Oshkosh and Ingersoll is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Oshkosh and Ingersoll Rand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingersoll Rand and Oshkosh 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 Oshkosh are associated (or correlated) with Ingersoll Rand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingersoll Rand has no effect on the direction of Oshkosh i.e., Oshkosh and Ingersoll Rand go up and down completely randomly.

Pair Corralation between Oshkosh and Ingersoll Rand

Considering the 90-day investment horizon Oshkosh is expected to generate 0.9 times more return on investment than Ingersoll Rand. However, Oshkosh is 1.11 times less risky than Ingersoll Rand. It trades about 0.35 of its potential returns per unit of risk. Ingersoll Rand is currently generating about 0.0 per unit of risk. If you would invest  8,781  in Oshkosh on May 6, 2025 and sell it today you would earn a total of  4,273  from holding Oshkosh or generate 48.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Oshkosh  vs.  Ingersoll Rand

Oshkosh

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oshkosh are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal basic indicators, Oshkosh disclosed solid returns over the last few months and may actually be approaching a breakup point.

Ingersoll Rand

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ingersoll Rand has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Ingersoll Rand is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Oshkosh and Ingersoll Rand

The main advantage of trading using opposite Oshkosh and Ingersoll Rand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshkosh position performs unexpectedly, Ingersoll Rand 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 Ingersoll Rand will offset losses from the drop in Ingersoll Rand's long position.

The idea behind Oshkosh and Ingersoll Rand 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.

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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 the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.