Correlation Between PARKEN Sport and Yixin Group
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and Yixin Group 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 Yixin Group 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 Yixin Group Limited, you can compare the effects of market volatilities on PARKEN Sport and Yixin Group 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 Yixin Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and Yixin Group.
Diversification Opportunities for PARKEN Sport and Yixin Group
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PARKEN and Yixin is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and Yixin Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yixin Group Limited 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 Yixin Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yixin Group Limited has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and Yixin Group go up and down completely randomly.
Pair Corralation between PARKEN Sport and Yixin Group
Assuming the 90 days horizon PARKEN Sport Entertainment is expected to under-perform the Yixin Group. But the stock apears to be less risky and, when comparing its historical volatility, PARKEN Sport Entertainment is 2.29 times less risky than Yixin Group. The stock trades about -0.02 of its potential returns per unit of risk. The Yixin Group Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 7.50 in Yixin Group Limited on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Yixin Group Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. Yixin Group Limited
Performance |
| Timeline |
| PARKEN Sport Enterta |
| Yixin Group Limited |
PARKEN Sport and Yixin Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and Yixin Group
The main advantage of trading using opposite PARKEN Sport and Yixin Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, Yixin Group 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 Yixin Group will offset losses from the drop in Yixin Group's long position.| PARKEN Sport vs. DAIRY FARM INTL | PARKEN Sport vs. Chongqing Machinery Electric | PARKEN Sport vs. Nufarm Limited | PARKEN Sport vs. CNVISION MEDIA |
| Yixin Group vs. ALTAIR RES INC | Yixin Group vs. CARSALESCOM | Yixin Group vs. Gruppo Mutuionline SpA | Yixin Group vs. Pentair plc |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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