Correlation Between Charter Hall and Parkd
Can any of the company-specific risk be diversified away by investing in both Charter Hall and Parkd 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 Charter Hall and Parkd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charter Hall Retail and Parkd, you can compare the effects of market volatilities on Charter Hall and Parkd 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 Charter Hall with a short position of Parkd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charter Hall and Parkd.
Diversification Opportunities for Charter Hall and Parkd
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Charter and Parkd is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Charter Hall Retail and Parkd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parkd and Charter Hall 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 Charter Hall Retail are associated (or correlated) with Parkd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parkd has no effect on the direction of Charter Hall i.e., Charter Hall and Parkd go up and down completely randomly.
Pair Corralation between Charter Hall and Parkd
Assuming the 90 days trading horizon Charter Hall is expected to generate 9.54 times less return on investment than Parkd. But when comparing it to its historical volatility, Charter Hall Retail is 4.26 times less risky than Parkd. It trades about 0.01 of its potential returns per unit of risk. Parkd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2.00 in Parkd on September 12, 2024 and sell it today you would earn a total of 0.10 from holding Parkd or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Charter Hall Retail vs. Parkd
Performance |
| Timeline |
| Charter Hall Retail |
| Parkd |
Charter Hall and Parkd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charter Hall and Parkd
The main advantage of trading using opposite Charter Hall and Parkd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charter Hall position performs unexpectedly, Parkd 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 Parkd will offset losses from the drop in Parkd's long position.| Charter Hall vs. Falcon Metals | Charter Hall vs. Homeco Daily Needs | Charter Hall vs. Austco Healthcare | Charter Hall vs. Fisher Paykel Healthcare |
| Parkd vs. Carnegie Clean Energy | Parkd vs. Australian Unity Office | Parkd vs. Charter Hall Retail | Parkd vs. Aristocrat Leisure |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |