Correlation Between PARKEN Sport and FUTURE GAMING
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and FUTURE GAMING 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 FUTURE GAMING 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 FUTURE GAMING GRP, you can compare the effects of market volatilities on PARKEN Sport and FUTURE GAMING 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 FUTURE GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and FUTURE GAMING.
Diversification Opportunities for PARKEN Sport and FUTURE GAMING
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PARKEN and FUTURE is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and FUTURE GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUTURE GAMING GRP 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 FUTURE GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUTURE GAMING GRP has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and FUTURE GAMING go up and down completely randomly.
Pair Corralation between PARKEN Sport and FUTURE GAMING
Assuming the 90 days horizon PARKEN Sport Entertainment is expected to generate 0.47 times more return on investment than FUTURE GAMING. However, PARKEN Sport Entertainment is 2.11 times less risky than FUTURE GAMING. It trades about -0.15 of its potential returns per unit of risk. FUTURE GAMING GRP is currently generating about -0.28 per unit of risk. If you would invest 1,875 in PARKEN Sport Entertainment on November 4, 2024 and sell it today you would lose (120.00) from holding PARKEN Sport Entertainment or give up 6.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. FUTURE GAMING GRP
Performance |
| Timeline |
| PARKEN Sport Enterta |
| FUTURE GAMING GRP |
PARKEN Sport and FUTURE GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and FUTURE GAMING
The main advantage of trading using opposite PARKEN Sport and FUTURE GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, FUTURE GAMING 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 FUTURE GAMING will offset losses from the drop in FUTURE GAMING's long position.| PARKEN Sport vs. ecotel communication ag | PARKEN Sport vs. JAPAN AIRLINES | PARKEN Sport vs. Aegean Airlines SA | PARKEN Sport vs. Citic Telecom International |
| FUTURE GAMING vs. TELECOM ITALRISP ADR10 | FUTURE GAMING vs. Check Point Software | FUTURE GAMING vs. Charter Communications | FUTURE GAMING vs. Spirent Communications 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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