Correlation Between Park National and Portillos
Can any of the company-specific risk be diversified away by investing in both Park National and Portillos 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 National and Portillos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Park National and Portillos, you can compare the effects of market volatilities on Park National and Portillos 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 National with a short position of Portillos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park National and Portillos.
Diversification Opportunities for Park National and Portillos
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Park and Portillos is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Park National and Portillos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Portillos and Park National 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 National are associated (or correlated) with Portillos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Portillos has no effect on the direction of Park National i.e., Park National and Portillos go up and down completely randomly.
Pair Corralation between Park National and Portillos
Considering the 90-day investment horizon Park National is expected to generate 0.78 times more return on investment than Portillos. However, Park National is 1.28 times less risky than Portillos. It trades about 0.05 of its potential returns per unit of risk. Portillos is currently generating about -0.02 per unit of risk. If you would invest 11,900 in Park National on November 9, 2024 and sell it today you would earn a total of 5,397 from holding Park National or generate 45.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Park National vs. Portillos
Performance |
| Timeline |
| Park National |
| Portillos |
Park National and Portillos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park National and Portillos
The main advantage of trading using opposite Park National and Portillos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park National position performs unexpectedly, Portillos 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 Portillos will offset losses from the drop in Portillos' long position.| Park National vs. Peoples Bancorp | Park National vs. Lakeland Financial | Park National vs. NBT Bancorp | Park National vs. Trustmark |
| Portillos vs. Brinker International | Portillos vs. Bloomin Brands | Portillos vs. Wingstop | Portillos vs. Papa Johns International |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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