Correlation Between AMAG Austria and PARKEN Sport
Can any of the company-specific risk be diversified away by investing in both AMAG Austria 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 AMAG Austria and PARKEN Sport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMAG Austria Metall and PARKEN Sport Entertainment, you can compare the effects of market volatilities on AMAG Austria 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 AMAG Austria with a short position of PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMAG Austria and PARKEN Sport.
Diversification Opportunities for AMAG Austria and PARKEN Sport
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AMAG and PARKEN is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding AMAG Austria Metall 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 AMAG Austria 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 AMAG Austria Metall 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 AMAG Austria i.e., AMAG Austria and PARKEN Sport go up and down completely randomly.
Pair Corralation between AMAG Austria and PARKEN Sport
Assuming the 90 days horizon AMAG Austria Metall is expected to under-perform the PARKEN Sport. But the stock apears to be less risky and, when comparing its historical volatility, AMAG Austria Metall is 5.37 times less risky than PARKEN Sport. The stock trades about -0.03 of its potential returns per unit of risk. The PARKEN Sport Entertainment is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 642.00 in PARKEN Sport Entertainment on October 16, 2024 and sell it today you would earn a total of 1,173 from holding PARKEN Sport Entertainment or generate 182.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMAG Austria Metall vs. PARKEN Sport Entertainment
Performance |
| Timeline |
| AMAG Austria Metall |
| PARKEN Sport Enterta |
AMAG Austria and PARKEN Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMAG Austria and PARKEN Sport
The main advantage of trading using opposite AMAG Austria and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMAG Austria 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.| AMAG Austria vs. PARKEN Sport Entertainment | AMAG Austria vs. Yuexiu Transport Infrastructure | AMAG Austria vs. Cleanaway Waste Management | AMAG Austria vs. DAIDO METAL TD |
| PARKEN Sport vs. Focus Home Interactive | PARKEN Sport vs. China BlueChemical | PARKEN Sport vs. Siamgas And Petrochemicals | PARKEN Sport vs. Sinopec Shanghai Petrochemical |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |