Correlation Between Bactiquant and PARKEN Sport
Can any of the company-specific risk be diversified away by investing in both Bactiquant 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 Bactiquant and PARKEN Sport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bactiquant AS and PARKEN Sport Entertainment, you can compare the effects of market volatilities on Bactiquant 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 Bactiquant with a short position of PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bactiquant and PARKEN Sport.
Diversification Opportunities for Bactiquant and PARKEN Sport
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bactiquant and PARKEN is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bactiquant AS 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 Bactiquant 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 Bactiquant AS 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 Bactiquant i.e., Bactiquant and PARKEN Sport go up and down completely randomly.
Pair Corralation between Bactiquant and PARKEN Sport
Assuming the 90 days trading horizon Bactiquant AS is expected to under-perform the PARKEN Sport. In addition to that, Bactiquant is 1.11 times more volatile than PARKEN Sport Entertainment. It trades about -0.29 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 11,600 in PARKEN Sport Entertainment on August 29, 2024 and sell it today you would earn a total of 450.00 from holding PARKEN Sport Entertainment or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bactiquant AS vs. PARKEN Sport Entertainment
Performance |
| Timeline |
| Bactiquant AS |
| PARKEN Sport Enterta |
Bactiquant and PARKEN Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bactiquant and PARKEN Sport
The main advantage of trading using opposite Bactiquant and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bactiquant 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.| Bactiquant vs. Skjern Bank AS | Bactiquant vs. North Media AS | Bactiquant vs. Nordfyns Bank AS | Bactiquant vs. PARKEN Sport Entertainment |
| PARKEN Sport vs. Broendbyernes IF Fodbold | PARKEN Sport vs. Bang Olufsen | PARKEN Sport vs. Matas AS | PARKEN Sport vs. NKT AS |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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