Correlation Between Tevogen Bio and Park Electrochemical
Can any of the company-specific risk be diversified away by investing in both Tevogen Bio and Park Electrochemical 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 Tevogen Bio and Park Electrochemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tevogen Bio Holdings and Park Electrochemical, you can compare the effects of market volatilities on Tevogen Bio and Park Electrochemical 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 Tevogen Bio with a short position of Park Electrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tevogen Bio and Park Electrochemical.
Diversification Opportunities for Tevogen Bio and Park Electrochemical
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tevogen and Park is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Tevogen Bio Holdings and Park Electrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Electrochemical and Tevogen Bio 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 Tevogen Bio Holdings are associated (or correlated) with Park Electrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Electrochemical has no effect on the direction of Tevogen Bio i.e., Tevogen Bio and Park Electrochemical go up and down completely randomly.
Pair Corralation between Tevogen Bio and Park Electrochemical
Given the investment horizon of 90 days Tevogen Bio Holdings is expected to generate 10.37 times more return on investment than Park Electrochemical. However, Tevogen Bio is 10.37 times more volatile than Park Electrochemical. It trades about 0.11 of its potential returns per unit of risk. Park Electrochemical is currently generating about 0.09 per unit of risk. If you would invest 46.00 in Tevogen Bio Holdings on November 3, 2024 and sell it today you would earn a total of 103.00 from holding Tevogen Bio Holdings or generate 223.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tevogen Bio Holdings vs. Park Electrochemical
Performance |
| Timeline |
| Tevogen Bio Holdings |
| Park Electrochemical |
Tevogen Bio and Park Electrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tevogen Bio and Park Electrochemical
The main advantage of trading using opposite Tevogen Bio and Park Electrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tevogen Bio position performs unexpectedly, Park Electrochemical 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 Electrochemical will offset losses from the drop in Park Electrochemical's long position.| Tevogen Bio vs. Modine Manufacturing | Tevogen Bio vs. Kontoor Brands | Tevogen Bio vs. Li Auto | Tevogen Bio vs. BorgWarner |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |