Correlation Between PARKEN Sport and HEXAGON AB
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and HEXAGON AB 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 HEXAGON AB 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 HEXAGON AB ADR1, you can compare the effects of market volatilities on PARKEN Sport and HEXAGON AB 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 HEXAGON AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and HEXAGON AB.
Diversification Opportunities for PARKEN Sport and HEXAGON AB
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PARKEN and HEXAGON is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and HEXAGON AB ADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEXAGON AB ADR1 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 HEXAGON AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEXAGON AB ADR1 has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and HEXAGON AB go up and down completely randomly.
Pair Corralation between PARKEN Sport and HEXAGON AB
Assuming the 90 days horizon PARKEN Sport Entertainment is expected to generate 3.31 times more return on investment than HEXAGON AB. However, PARKEN Sport is 3.31 times more volatile than HEXAGON AB ADR1. It trades about 0.06 of its potential returns per unit of risk. HEXAGON AB ADR1 is currently generating about 0.01 per unit of risk. If you would invest 591.00 in PARKEN Sport Entertainment on September 12, 2024 and sell it today you would earn a total of 1,094 from holding PARKEN Sport Entertainment or generate 185.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. HEXAGON AB ADR1
Performance |
| Timeline |
| PARKEN Sport Enterta |
| HEXAGON AB ADR1 |
PARKEN Sport and HEXAGON AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and HEXAGON AB
The main advantage of trading using opposite PARKEN Sport and HEXAGON AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, HEXAGON AB 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 HEXAGON AB will offset losses from the drop in HEXAGON AB's long position.| PARKEN Sport vs. The Walt Disney | PARKEN Sport vs. Charter Communications | PARKEN Sport vs. Warner Music Group | PARKEN Sport vs. Superior Plus Corp |
| HEXAGON AB vs. REVO INSURANCE SPA | HEXAGON AB vs. ALIOR BANK | HEXAGON AB vs. QURATE RETAIL INC | HEXAGON AB vs. Commonwealth Bank of |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Positions Ratings 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 | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |