Correlation Between Park Electrochemical and Sellas Life
Can any of the company-specific risk be diversified away by investing in both Park Electrochemical and Sellas Life 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 Park Electrochemical and Sellas Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Park Electrochemical and Sellas Life Sciences, you can compare the effects of market volatilities on Park Electrochemical and Sellas Life 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 Park Electrochemical with a short position of Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Electrochemical and Sellas Life.
Diversification Opportunities for Park Electrochemical and Sellas Life
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Park and Sellas is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Park Electrochemical and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences and Park Electrochemical 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 Park Electrochemical are associated (or correlated) with Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of Park Electrochemical i.e., Park Electrochemical and Sellas Life go up and down completely randomly.
Pair Corralation between Park Electrochemical and Sellas Life
Considering the 90-day investment horizon Park Electrochemical is expected to generate 29.02 times less return on investment than Sellas Life. But when comparing it to its historical volatility, Park Electrochemical is 5.79 times less risky than Sellas Life. It trades about 0.04 of its potential returns per unit of risk. Sellas Life Sciences is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 106.00 in Sellas Life Sciences on November 5, 2024 and sell it today you would earn a total of 42.00 from holding Sellas Life Sciences or generate 39.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Park Electrochemical vs. Sellas Life Sciences
Performance |
| Timeline |
| Park Electrochemical |
| Sellas Life Sciences |
Park Electrochemical and Sellas Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Electrochemical and Sellas Life
The main advantage of trading using opposite Park Electrochemical and Sellas Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Electrochemical position performs unexpectedly, Sellas Life 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 Sellas Life will offset losses from the drop in Sellas Life's long position.| Park Electrochemical vs. Innovative Solutions and | Park Electrochemical vs. VSE Corporation | Park Electrochemical vs. Curtiss Wright | Park Electrochemical vs. Ducommun Incorporated |
| Sellas Life vs. NLS Pharmaceutics AG | Sellas Life vs. Mereo BioPharma Group | Sellas Life vs. Day One Biopharmaceuticals | Sellas Life vs. Reviva Pharmaceuticals 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |