Correlation Between ZhongAn Online and PARKEN Sport
Can any of the company-specific risk be diversified away by investing in both ZhongAn Online 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 ZhongAn Online and PARKEN Sport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZhongAn Online P and PARKEN Sport Entertainment, you can compare the effects of market volatilities on ZhongAn Online 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 ZhongAn Online with a short position of PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZhongAn Online and PARKEN Sport.
Diversification Opportunities for ZhongAn Online and PARKEN Sport
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ZhongAn and PARKEN is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding ZhongAn Online P 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 ZhongAn Online 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 ZhongAn Online P 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 ZhongAn Online i.e., ZhongAn Online and PARKEN Sport go up and down completely randomly.
Pair Corralation between ZhongAn Online and PARKEN Sport
Assuming the 90 days trading horizon ZhongAn Online P is expected to generate 0.7 times more return on investment than PARKEN Sport. However, ZhongAn Online P is 1.42 times less risky than PARKEN Sport. It trades about 0.14 of its potential returns per unit of risk. PARKEN Sport Entertainment is currently generating about 0.05 per unit of risk. If you would invest 137.00 in ZhongAn Online P on November 3, 2024 and sell it today you would earn a total of 8.00 from holding ZhongAn Online P or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZhongAn Online P vs. PARKEN Sport Entertainment
Performance |
| Timeline |
| ZhongAn Online P |
| PARKEN Sport Enterta |
ZhongAn Online and PARKEN Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZhongAn Online and PARKEN Sport
The main advantage of trading using opposite ZhongAn Online and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZhongAn Online 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.| ZhongAn Online vs. SENECA FOODS A | ZhongAn Online vs. Casio Computer CoLtd | ZhongAn Online vs. GMO Internet | ZhongAn Online vs. Verizon Communications |
| PARKEN Sport vs. SANOK RUBBER ZY | PARKEN Sport vs. Plastic Omnium | PARKEN Sport vs. FIREWEED METALS P | PARKEN Sport vs. Martin Marietta Materials |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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