Correlation Between BankInvest Optima and PARKEN Sport
Can any of the company-specific risk be diversified away by investing in both BankInvest Optima 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 BankInvest Optima and PARKEN Sport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BankInvest Optima 30 and PARKEN Sport Entertainment, you can compare the effects of market volatilities on BankInvest Optima 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 BankInvest Optima with a short position of PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Optima and PARKEN Sport.
Diversification Opportunities for BankInvest Optima and PARKEN Sport
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BankInvest and PARKEN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Optima 30 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 BankInvest Optima 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 BankInvest Optima 30 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 BankInvest Optima i.e., BankInvest Optima and PARKEN Sport go up and down completely randomly.
Pair Corralation between BankInvest Optima and PARKEN Sport
Assuming the 90 days trading horizon BankInvest Optima is expected to generate 4.28 times less return on investment than PARKEN Sport. But when comparing it to its historical volatility, BankInvest Optima 30 is 5.04 times less risky than PARKEN Sport. It trades about 0.09 of its potential returns per unit of risk. PARKEN Sport Entertainment is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7,145 in PARKEN Sport Entertainment on October 18, 2024 and sell it today you would earn a total of 6,505 from holding PARKEN Sport Entertainment or generate 91.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.7% |
| Values | Daily Returns |
BankInvest Optima 30 vs. PARKEN Sport Entertainment
Performance |
| Timeline |
| BankInvest Optima |
| PARKEN Sport Enterta |
BankInvest Optima and PARKEN Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Optima and PARKEN Sport
The main advantage of trading using opposite BankInvest Optima and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Optima 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.| BankInvest Optima vs. Novo Nordisk AS | BankInvest Optima vs. Nordea Bank Abp | BankInvest Optima vs. DSV Panalpina AS | BankInvest Optima vs. AP Mller |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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