Correlation Between Apyx Medical and PARKEN Sport
Can any of the company-specific risk be diversified away by investing in both Apyx Medical 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 Apyx Medical and PARKEN Sport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical Corp and PARKEN Sport Entertainment, you can compare the effects of market volatilities on Apyx Medical 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 Apyx Medical with a short position of PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and PARKEN Sport.
Diversification Opportunities for Apyx Medical and PARKEN Sport
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apyx and PARKEN is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical Corp 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 Apyx Medical 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 Apyx Medical Corp 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 Apyx Medical i.e., Apyx Medical and PARKEN Sport go up and down completely randomly.
Pair Corralation between Apyx Medical and PARKEN Sport
Assuming the 90 days trading horizon Apyx Medical Corp is expected to under-perform the PARKEN Sport. But the stock apears to be less risky and, when comparing its historical volatility, Apyx Medical Corp is 1.52 times less risky than PARKEN Sport. The stock trades about -0.01 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 753.00 in PARKEN Sport Entertainment on August 26, 2024 and sell it today you would earn a total of 862.00 from holding PARKEN Sport Entertainment or generate 114.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apyx Medical Corp vs. PARKEN Sport Entertainment
Performance |
| Timeline |
| Apyx Medical Corp |
| PARKEN Sport Enterta |
Apyx Medical and PARKEN Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apyx Medical and PARKEN Sport
The main advantage of trading using opposite Apyx Medical and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical 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.| Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc |
| PARKEN Sport vs. The Walt Disney | PARKEN Sport vs. Superior Plus Corp | PARKEN Sport vs. NMI Holdings | PARKEN Sport vs. Origin Agritech |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |