Correlation Between PARKEN Sport and Lendlease
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and Lendlease 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 Lendlease 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 Lendlease Group, you can compare the effects of market volatilities on PARKEN Sport and Lendlease 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 Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and Lendlease.
Diversification Opportunities for PARKEN Sport and Lendlease
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PARKEN and Lendlease is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group 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 Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and Lendlease go up and down completely randomly.
Pair Corralation between PARKEN Sport and Lendlease
Assuming the 90 days horizon PARKEN Sport Entertainment is expected to generate 1.12 times more return on investment than Lendlease. However, PARKEN Sport is 1.12 times more volatile than Lendlease Group. It trades about 0.0 of its potential returns per unit of risk. Lendlease Group is currently generating about -0.03 per unit of risk. If you would invest 1,615 in PARKEN Sport Entertainment on August 25, 2024 and sell it today you would lose (5.00) from holding PARKEN Sport Entertainment or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. Lendlease Group
Performance |
| Timeline |
| PARKEN Sport Enterta |
| Lendlease Group |
PARKEN Sport and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and Lendlease
The main advantage of trading using opposite PARKEN Sport and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, Lendlease 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 Lendlease will offset losses from the drop in Lendlease's long position.| PARKEN Sport vs. Enter Air SA | PARKEN Sport vs. IMPERIAL TOBACCO | PARKEN Sport vs. Geely Automobile Holdings | PARKEN Sport vs. Alaska Air Group |
| Lendlease vs. GEELY AUTOMOBILE | Lendlease vs. Dairy Farm International | Lendlease vs. Cars Inc | Lendlease vs. Geely Automobile Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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