Correlation Between PARKEN Sport and LED IBond
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By analyzing existing cross correlation between PARKEN Sport Entertainment and LED iBond International, you can compare the effects of market volatilities on PARKEN Sport and LED IBond 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 LED IBond. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and LED IBond.
Diversification Opportunities for PARKEN Sport and LED IBond
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between PARKEN and LED is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and LED iBond International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LED iBond International 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 LED IBond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LED iBond International has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and LED IBond go up and down completely randomly.
Pair Corralation between PARKEN Sport and LED IBond
Assuming the 90 days trading horizon PARKEN Sport is expected to generate 2.23 times less return on investment than LED IBond. But when comparing it to its historical volatility, PARKEN Sport Entertainment is 5.21 times less risky than LED IBond. It trades about 0.08 of its potential returns per unit of risk. LED iBond International is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 65.00 in LED iBond International on September 14, 2024 and sell it today you would lose (20.00) from holding LED iBond International or give up 30.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. LED iBond International
Performance |
| Timeline |
| PARKEN Sport Enterta |
| LED iBond International |
PARKEN Sport and LED IBond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and LED IBond
The main advantage of trading using opposite PARKEN Sport and LED IBond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, LED IBond 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 LED IBond will offset losses from the drop in LED IBond's long position.| PARKEN Sport vs. Broendbyernes IF Fodbold | PARKEN Sport vs. Bang Olufsen | PARKEN Sport vs. Matas AS | PARKEN Sport vs. NKT AS |
| LED IBond vs. Scandinavian Tobacco Group | LED IBond vs. PARKEN Sport Entertainment | LED IBond vs. Prime Office AS | LED IBond vs. Vestjysk Bank AS |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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