Correlation Between PARKEN Sport and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and Gaztransport Technigaz 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 Gaztransport Technigaz 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 Gaztransport Technigaz SA, you can compare the effects of market volatilities on PARKEN Sport and Gaztransport Technigaz 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 Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and Gaztransport Technigaz.
Diversification Opportunities for PARKEN Sport and Gaztransport Technigaz
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PARKEN and Gaztransport is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz 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 Gaztransport Technigaz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport Technigaz has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between PARKEN Sport and Gaztransport Technigaz
Assuming the 90 days horizon PARKEN Sport Entertainment is expected to generate 3.32 times more return on investment than Gaztransport Technigaz. However, PARKEN Sport is 3.32 times more volatile than Gaztransport Technigaz SA. It trades about 0.06 of its potential returns per unit of risk. Gaztransport Technigaz SA is currently generating about 0.05 per unit of risk. If you would invest 405.00 in PARKEN Sport Entertainment on August 26, 2024 and sell it today you would earn a total of 1,205 from holding PARKEN Sport Entertainment or generate 297.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. Gaztransport Technigaz SA
Performance |
| Timeline |
| PARKEN Sport Enterta |
| Gaztransport Technigaz |
PARKEN Sport and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and Gaztransport Technigaz
The main advantage of trading using opposite PARKEN Sport and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, Gaztransport Technigaz 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 Gaztransport Technigaz will offset losses from the drop in Gaztransport Technigaz's long position.| PARKEN Sport vs. Science Applications International | PARKEN Sport vs. DOCDATA | PARKEN Sport vs. Zijin Mining Group | PARKEN Sport vs. Public Storage |
| Gaztransport Technigaz vs. X FAB Silicon Foundries | Gaztransport Technigaz vs. QUEEN S ROAD | Gaztransport Technigaz vs. MACOM Technology Solutions | Gaztransport Technigaz vs. Amkor Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| 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 | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |