Correlation Between PARKEN Sport and Corporate Travel
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and Corporate Travel 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 PARKEN Sport and Corporate Travel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PARKEN Sport Entertainment and Corporate Travel Management, you can compare the effects of market volatilities on PARKEN Sport and Corporate Travel 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 PARKEN Sport with a short position of Corporate Travel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and Corporate Travel.
Diversification Opportunities for PARKEN Sport and Corporate Travel
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between PARKEN and Corporate is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and Corporate Travel Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporate Travel Man and PARKEN Sport 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 PARKEN Sport Entertainment are associated (or correlated) with Corporate Travel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporate Travel Man has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and Corporate Travel go up and down completely randomly.
Pair Corralation between PARKEN Sport and Corporate Travel
Assuming the 90 days horizon PARKEN Sport is expected to generate 85.05 times less return on investment than Corporate Travel. But when comparing it to its historical volatility, PARKEN Sport Entertainment is 1.98 times less risky than Corporate Travel. It trades about 0.01 of its potential returns per unit of risk. Corporate Travel Management is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Corporate Travel Management on August 28, 2024 and sell it today you would earn a total of 145.00 from holding Corporate Travel Management or generate 20.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. Corporate Travel Management
Performance |
| Timeline |
| PARKEN Sport Enterta |
| Corporate Travel Man |
PARKEN Sport and Corporate Travel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and Corporate Travel
The main advantage of trading using opposite PARKEN Sport and Corporate Travel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, Corporate Travel 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 Corporate Travel will offset losses from the drop in Corporate Travel's long position.| PARKEN Sport vs. The Walt Disney | PARKEN Sport vs. Superior Plus Corp | PARKEN Sport vs. NMI Holdings | PARKEN Sport vs. Origin Agritech |
| Corporate Travel vs. Penta Ocean Construction Co | Corporate Travel vs. Daito Trust Construction | Corporate Travel vs. Sterling Construction | Corporate Travel vs. WIMFARM SA EO |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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