Correlation Between Yixin Group and PARKEN Sport
Can any of the company-specific risk be diversified away by investing in both Yixin Group and PARKEN Sport 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 Yixin Group and PARKEN Sport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yixin Group Limited and PARKEN Sport Entertainment, you can compare the effects of market volatilities on Yixin Group and PARKEN Sport 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 Yixin Group with a short position of PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yixin Group and PARKEN Sport.
Diversification Opportunities for Yixin Group and PARKEN Sport
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yixin and PARKEN is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Yixin Group Limited and PARKEN Sport Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKEN Sport Enterta and Yixin Group 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 Yixin Group Limited are associated (or correlated) with PARKEN Sport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKEN Sport Enterta has no effect on the direction of Yixin Group i.e., Yixin Group and PARKEN Sport go up and down completely randomly.
Pair Corralation between Yixin Group and PARKEN Sport
Assuming the 90 days horizon Yixin Group Limited is expected to under-perform the PARKEN Sport. In addition to that, Yixin Group is 2.24 times more volatile than PARKEN Sport Entertainment. It trades about -0.14 of its total potential returns per unit of risk. PARKEN Sport Entertainment is currently generating about 0.04 per unit of volatility. If you would invest 1,595 in PARKEN Sport Entertainment on August 30, 2024 and sell it today you would earn a total of 20.00 from holding PARKEN Sport Entertainment or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Yixin Group Limited vs. PARKEN Sport Entertainment
Performance |
| Timeline |
| Yixin Group Limited |
| PARKEN Sport Enterta |
Yixin Group and PARKEN Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yixin Group and PARKEN Sport
The main advantage of trading using opposite Yixin Group and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yixin Group position performs unexpectedly, PARKEN Sport 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 PARKEN Sport will offset losses from the drop in PARKEN Sport's long position.| Yixin Group vs. PARKEN Sport Entertainment | Yixin Group vs. NTG Nordic Transport | Yixin Group vs. Mitsui Chemicals | Yixin Group vs. Austevoll Seafood ASA |
| PARKEN Sport vs. Netflix | PARKEN Sport vs. Superior Plus Corp | PARKEN Sport vs. NMI Holdings | PARKEN Sport vs. SIVERS SEMICONDUCTORS AB |
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 the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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