Correlation Between Strix Group and Park Aerospace
Can any of the company-specific risk be diversified away by investing in both Strix Group and Park Aerospace 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 Strix Group and Park Aerospace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strix Group Plc and Park Aerospace Corp, you can compare the effects of market volatilities on Strix Group and Park Aerospace 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 Strix Group with a short position of Park Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strix Group and Park Aerospace.
Diversification Opportunities for Strix Group and Park Aerospace
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Strix and Park is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Strix Group Plc and Park Aerospace Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Aerospace Corp and Strix Group 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 Strix Group Plc are associated (or correlated) with Park Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Aerospace Corp has no effect on the direction of Strix Group i.e., Strix Group and Park Aerospace go up and down completely randomly.
Pair Corralation between Strix Group and Park Aerospace
Assuming the 90 days horizon Strix Group Plc is expected to under-perform the Park Aerospace. In addition to that, Strix Group is 2.39 times more volatile than Park Aerospace Corp. It trades about -0.34 of its total potential returns per unit of risk. Park Aerospace Corp is currently generating about 0.1 per unit of volatility. If you would invest 1,370 in Park Aerospace Corp on September 12, 2024 and sell it today you would earn a total of 40.00 from holding Park Aerospace Corp or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Strix Group Plc vs. Park Aerospace Corp
Performance |
| Timeline |
| Strix Group Plc |
| Park Aerospace Corp |
Strix Group and Park Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strix Group and Park Aerospace
The main advantage of trading using opposite Strix Group and Park Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strix Group position performs unexpectedly, Park Aerospace 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 Aerospace will offset losses from the drop in Park Aerospace's long position.| Strix Group vs. CENTURIA OFFICE REIT | Strix Group vs. QUEEN S ROAD | Strix Group vs. Transportadora de Gas | Strix Group vs. Tower One Wireless |
| Park Aerospace vs. Broadcom | Park Aerospace vs. JD SPORTS FASH | Park Aerospace vs. EVS Broadcast Equipment | Park Aerospace vs. BII Railway Transportation |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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