Correlation Between Portillos and Park National
Can any of the company-specific risk be diversified away by investing in both Portillos and Park National 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 Portillos and Park National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Portillos and Park National, you can compare the effects of market volatilities on Portillos and Park National 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 Portillos with a short position of Park National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Portillos and Park National.
Diversification Opportunities for Portillos and Park National
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Portillos and Park is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Portillos and Park National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park National and Portillos 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 Portillos are associated (or correlated) with Park National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park National has no effect on the direction of Portillos i.e., Portillos and Park National go up and down completely randomly.
Pair Corralation between Portillos and Park National
Given the investment horizon of 90 days Portillos is expected to under-perform the Park National. In addition to that, Portillos is 1.28 times more volatile than Park National. It trades about -0.02 of its total potential returns per unit of risk. Park National is currently generating about 0.05 per unit of volatility. 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 |
Portillos vs. Park National
Performance |
| Timeline |
| Portillos |
| Park National |
Portillos and Park National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Portillos and Park National
The main advantage of trading using opposite Portillos and Park National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Portillos position performs unexpectedly, Park National 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 Park National will offset losses from the drop in Park National's long position.| Portillos vs. Brinker International | Portillos vs. Bloomin Brands | Portillos vs. Wingstop | Portillos vs. Papa Johns International |
| Park National vs. Peoples Bancorp | Park National vs. Lakeland Financial | Park National vs. NBT Bancorp | Park National vs. Trustmark |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |