Correlation Between PARKEN Sport and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and GRIFFIN MINING 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 GRIFFIN MINING 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 GRIFFIN MINING LTD, you can compare the effects of market volatilities on PARKEN Sport and GRIFFIN MINING 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 GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and GRIFFIN MINING.
Diversification Opportunities for PARKEN Sport and GRIFFIN MINING
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between PARKEN and GRIFFIN is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between PARKEN Sport and GRIFFIN MINING
Assuming the 90 days horizon PARKEN Sport Entertainment is expected to generate 0.49 times more return on investment than GRIFFIN MINING. However, PARKEN Sport Entertainment is 2.06 times less risky than GRIFFIN MINING. It trades about -0.01 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about -0.08 per unit of risk. If you would invest 1,775 in PARKEN Sport Entertainment on November 7, 2024 and sell it today you would lose (10.00) from holding PARKEN Sport Entertainment or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| PARKEN Sport Enterta |
| GRIFFIN MINING LTD |
PARKEN Sport and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and GRIFFIN MINING
The main advantage of trading using opposite PARKEN Sport and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, GRIFFIN MINING 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.| PARKEN Sport vs. AUST AGRICULTURAL | PARKEN Sport vs. Thai Beverage Public | PARKEN Sport vs. Titan Machinery | PARKEN Sport vs. Monster Beverage Corp |
| GRIFFIN MINING vs. INFORMATION SVC GRP | GRIFFIN MINING vs. Linedata Services SA | GRIFFIN MINING vs. DATATEC LTD 2 | GRIFFIN MINING vs. Cars 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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