Correlation Between PARKEN Sport and Ladder Capital
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and Ladder Capital 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 Ladder Capital 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 Ladder Capital Corp, you can compare the effects of market volatilities on PARKEN Sport and Ladder Capital 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 Ladder Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and Ladder Capital.
Diversification Opportunities for PARKEN Sport and Ladder Capital
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PARKEN and Ladder is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and Ladder Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladder Capital 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 Ladder Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladder Capital Corp has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and Ladder Capital go up and down completely randomly.
Pair Corralation between PARKEN Sport and Ladder Capital
Assuming the 90 days horizon PARKEN Sport Entertainment is expected to generate 1.67 times more return on investment than Ladder Capital. However, PARKEN Sport is 1.67 times more volatile than Ladder Capital Corp. It trades about 0.13 of its potential returns per unit of risk. Ladder Capital Corp is currently generating about -0.14 per unit of risk. If you would invest 1,610 in PARKEN Sport Entertainment on September 21, 2024 and sell it today you would earn a total of 95.00 from holding PARKEN Sport Entertainment or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. Ladder Capital Corp
Performance |
| Timeline |
| PARKEN Sport Enterta |
| Ladder Capital Corp |
PARKEN Sport and Ladder Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and Ladder Capital
The main advantage of trading using opposite PARKEN Sport and Ladder Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, Ladder Capital 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 Ladder Capital will offset losses from the drop in Ladder Capital's long position.| PARKEN Sport vs. National Bank Holdings | PARKEN Sport vs. VIRG NATL BANKSH | PARKEN Sport vs. MAGNUM MINING EXP | PARKEN Sport vs. MCEWEN MINING INC |
| Ladder Capital vs. PARKEN Sport Entertainment | Ladder Capital vs. GREENX METALS LTD | Ladder Capital vs. LION ONE METALS | Ladder Capital vs. Hollywood Bowl Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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