Correlation Between Park Electrochemical and GENERAL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Park Electrochemical and GENERAL ELEC CAP, you can compare the effects of market volatilities on Park Electrochemical and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Electrochemical and GENERAL.
Diversification Opportunities for Park Electrochemical and GENERAL
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Park and GENERAL is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Park Electrochemical and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Park Electrochemical i.e., Park Electrochemical and GENERAL go up and down completely randomly.
Pair Corralation between Park Electrochemical and GENERAL
Considering the 90-day investment horizon Park Electrochemical is expected to generate 0.87 times more return on investment than GENERAL. However, Park Electrochemical is 1.15 times less risky than GENERAL. It trades about 0.02 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.01 per unit of risk. If you would invest 1,413 in Park Electrochemical on September 14, 2024 and sell it today you would earn a total of 64.00 from holding Park Electrochemical or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 37.75% |
| Values | Daily Returns |
Park Electrochemical vs. GENERAL ELEC CAP
Performance |
| Timeline |
| Park Electrochemical |
| GENERAL ELEC CAP |
Park Electrochemical and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Electrochemical and GENERAL
The main advantage of trading using opposite Park Electrochemical and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Electrochemical position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Park Electrochemical vs. Innovative Solutions and | Park Electrochemical vs. VSE Corporation | Park Electrochemical vs. Curtiss Wright | Park Electrochemical vs. Ducommun Incorporated |
| GENERAL vs. Teleflex Incorporated | GENERAL vs. Amgen Inc | GENERAL vs. Merit Medical Systems | GENERAL vs. United Fire Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |