Correlation Between PARKEN Sport and Freetrailer Group
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and Freetrailer Group 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 Freetrailer Group 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 Freetrailer Group AS, you can compare the effects of market volatilities on PARKEN Sport and Freetrailer Group 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 Freetrailer Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and Freetrailer Group.
Diversification Opportunities for PARKEN Sport and Freetrailer Group
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between PARKEN and Freetrailer is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and Freetrailer Group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freetrailer 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 Freetrailer Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freetrailer Group has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and Freetrailer Group go up and down completely randomly.
Pair Corralation between PARKEN Sport and Freetrailer Group
Assuming the 90 days trading horizon PARKEN Sport is expected to generate 35.32 times less return on investment than Freetrailer Group. But when comparing it to its historical volatility, PARKEN Sport Entertainment is 1.51 times less risky than Freetrailer Group. It trades about 0.01 of its potential returns per unit of risk. Freetrailer Group AS is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,550 in Freetrailer Group AS on August 31, 2024 and sell it today you would earn a total of 300.00 from holding Freetrailer Group AS or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. Freetrailer Group AS
Performance |
| Timeline |
| PARKEN Sport Enterta |
| Freetrailer Group |
PARKEN Sport and Freetrailer Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and Freetrailer Group
The main advantage of trading using opposite PARKEN Sport and Freetrailer Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, Freetrailer Group 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 Freetrailer Group will offset losses from the drop in Freetrailer Group's long position.| PARKEN Sport vs. Broendbyernes IF Fodbold | PARKEN Sport vs. Bang Olufsen | PARKEN Sport vs. Matas AS | PARKEN Sport vs. NKT AS |
| Freetrailer Group vs. PARKEN Sport Entertainment | Freetrailer Group vs. Spar Nord Bank | Freetrailer Group vs. Fynske Bank AS | Freetrailer Group vs. NTG Nordic Transport |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |