Correlation Between PARKEN Sport and Meiko Electronics
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and Meiko Electronics 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 Meiko Electronics 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 Meiko Electronics Co, you can compare the effects of market volatilities on PARKEN Sport and Meiko Electronics 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 Meiko Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and Meiko Electronics.
Diversification Opportunities for PARKEN Sport and Meiko Electronics
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PARKEN and Meiko is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and Meiko Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiko Electronics 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 Meiko Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiko Electronics has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and Meiko Electronics go up and down completely randomly.
Pair Corralation between PARKEN Sport and Meiko Electronics
Assuming the 90 days horizon PARKEN Sport is expected to generate 3.52 times less return on investment than Meiko Electronics. But when comparing it to its historical volatility, PARKEN Sport Entertainment is 1.62 times less risky than Meiko Electronics. It trades about 0.1 of its potential returns per unit of risk. Meiko Electronics Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 3,520 in Meiko Electronics Co on October 17, 2024 and sell it today you would earn a total of 1,880 from holding Meiko Electronics Co or generate 53.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. Meiko Electronics Co
Performance |
| Timeline |
| PARKEN Sport Enterta |
| Meiko Electronics |
PARKEN Sport and Meiko Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and Meiko Electronics
The main advantage of trading using opposite PARKEN Sport and Meiko Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, Meiko Electronics 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 Meiko Electronics will offset losses from the drop in Meiko Electronics' long position.| PARKEN Sport vs. The Walt Disney | PARKEN Sport vs. The Walt Disney | PARKEN Sport vs. Netflix | PARKEN Sport vs. Charter Communications |
| Meiko Electronics vs. PARKEN Sport Entertainment | Meiko Electronics vs. ADRIATIC METALS LS 013355 | Meiko Electronics vs. SPORT LISBOA E | Meiko Electronics vs. Gaztransport Technigaz SA |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |