Correlation Between Park Electrochemical and FEDEX
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By analyzing existing cross correlation between Park Electrochemical and FEDEX P, you can compare the effects of market volatilities on Park Electrochemical and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Electrochemical and FEDEX.
Diversification Opportunities for Park Electrochemical and FEDEX
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Park and FEDEX is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Park Electrochemical and FEDEX P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P has no effect on the direction of Park Electrochemical i.e., Park Electrochemical and FEDEX go up and down completely randomly.
Pair Corralation between Park Electrochemical and FEDEX
Considering the 90-day investment horizon Park Electrochemical is expected to generate 1.12 times less return on investment than FEDEX. But when comparing it to its historical volatility, Park Electrochemical is 1.05 times less risky than FEDEX. It trades about 0.28 of its potential returns per unit of risk. FEDEX P is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 7,380 in FEDEX P on September 2, 2024 and sell it today you would earn a total of 834.00 from holding FEDEX P or generate 11.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
Park Electrochemical vs. FEDEX P
Performance |
| Timeline |
| Park Electrochemical |
| FEDEX P |
Park Electrochemical and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Electrochemical and FEDEX
The main advantage of trading using opposite Park Electrochemical and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Electrochemical position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.| Park Electrochemical vs. Innovative Solutions and | Park Electrochemical vs. VSE Corporation | Park Electrochemical vs. Curtiss Wright | Park Electrochemical vs. Ducommun Incorporated |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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