Correlation Between PARKEN Sport and Thoresen Thai
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and Thoresen Thai 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 Thoresen Thai 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 Thoresen Thai Agencies, you can compare the effects of market volatilities on PARKEN Sport and Thoresen Thai 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 Thoresen Thai. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and Thoresen Thai.
Diversification Opportunities for PARKEN Sport and Thoresen Thai
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PARKEN and Thoresen is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and Thoresen Thai Agencies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thoresen Thai Agencies 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 Thoresen Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thoresen Thai Agencies has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and Thoresen Thai go up and down completely randomly.
Pair Corralation between PARKEN Sport and Thoresen Thai
Assuming the 90 days horizon PARKEN Sport Entertainment is expected to generate 1.51 times more return on investment than Thoresen Thai. However, PARKEN Sport is 1.51 times more volatile than Thoresen Thai Agencies. It trades about 0.07 of its potential returns per unit of risk. Thoresen Thai Agencies is currently generating about 0.0 per unit of risk. If you would invest 429.00 in PARKEN Sport Entertainment on September 19, 2024 and sell it today you would earn a total of 1,316 from holding PARKEN Sport Entertainment or generate 306.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. Thoresen Thai Agencies
Performance |
| Timeline |
| PARKEN Sport Enterta |
| Thoresen Thai Agencies |
PARKEN Sport and Thoresen Thai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and Thoresen Thai
The main advantage of trading using opposite PARKEN Sport and Thoresen Thai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, Thoresen Thai 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 Thoresen Thai will offset losses from the drop in Thoresen Thai's long position.| PARKEN Sport vs. Cogent Communications Holdings | PARKEN Sport vs. Iridium Communications | PARKEN Sport vs. Zoom Video Communications | PARKEN Sport vs. Singapore Telecommunications Limited |
| Thoresen Thai vs. THAI BEVERAGE | Thoresen Thai vs. PARKEN Sport Entertainment | Thoresen Thai vs. PT Global Mediacom | Thoresen Thai vs. LG Display Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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