Correlation Between PARKEN Sport and Apyx Medical
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and Apyx Medical 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 Apyx Medical 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 Apyx Medical Corp, you can compare the effects of market volatilities on PARKEN Sport and Apyx Medical 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 Apyx Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and Apyx Medical.
Diversification Opportunities for PARKEN Sport and Apyx Medical
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PARKEN and Apyx is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and Apyx Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apyx Medical Corp 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 Apyx Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apyx Medical Corp has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and Apyx Medical go up and down completely randomly.
Pair Corralation between PARKEN Sport and Apyx Medical
Assuming the 90 days horizon PARKEN Sport Entertainment is expected to generate 1.52 times more return on investment than Apyx Medical. However, PARKEN Sport is 1.52 times more volatile than Apyx Medical Corp. It trades about 0.06 of its potential returns per unit of risk. Apyx Medical Corp is currently generating about -0.01 per unit of risk. If you would invest 753.00 in PARKEN Sport Entertainment on August 26, 2024 and sell it today you would earn a total of 862.00 from holding PARKEN Sport Entertainment or generate 114.48% 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. Apyx Medical Corp
Performance |
| Timeline |
| PARKEN Sport Enterta |
| Apyx Medical Corp |
PARKEN Sport and Apyx Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and Apyx Medical
The main advantage of trading using opposite PARKEN Sport and Apyx Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, Apyx Medical 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 Apyx Medical will offset losses from the drop in Apyx Medical'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 |
| Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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