Correlation Between Allianz SE and PARKEN Sport
Can any of the company-specific risk be diversified away by investing in both Allianz SE 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 Allianz SE and PARKEN Sport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianz SE and PARKEN Sport Entertainment, you can compare the effects of market volatilities on Allianz SE 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 Allianz SE with a short position of PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz SE and PARKEN Sport.
Diversification Opportunities for Allianz SE and PARKEN Sport
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Allianz and PARKEN is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Allianz SE 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 Allianz SE 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 Allianz SE 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 Allianz SE i.e., Allianz SE and PARKEN Sport go up and down completely randomly.
Pair Corralation between Allianz SE and PARKEN Sport
Assuming the 90 days horizon Allianz SE is expected to generate 5.71 times less return on investment than PARKEN Sport. But when comparing it to its historical volatility, Allianz SE is 9.84 times less risky than PARKEN Sport. It trades about 0.12 of its potential returns per unit of risk. PARKEN Sport Entertainment is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 731.00 in PARKEN Sport Entertainment on August 29, 2024 and sell it today you would earn a total of 889.00 from holding PARKEN Sport Entertainment or generate 121.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.53% |
| Values | Daily Returns |
Allianz SE vs. PARKEN Sport Entertainment
Performance |
| Timeline |
| Allianz SE |
| PARKEN Sport Enterta |
Allianz SE and PARKEN Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz SE and PARKEN Sport
The main advantage of trading using opposite Allianz SE and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz SE 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.| Allianz SE vs. AXWAY SOFTWARE EO | Allianz SE vs. Axcelis Technologies | Allianz SE vs. Sqs Software Quality | Allianz SE vs. MAGIC SOFTWARE ENTR |
| PARKEN Sport vs. Netflix | PARKEN Sport vs. Warner Music Group | PARKEN Sport vs. Superior Plus Corp | PARKEN Sport vs. NMI Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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