Correlation Between Superior Plus and PARKEN Sport

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Superior Plus and PARKEN Sport 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 Superior Plus and PARKEN Sport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and PARKEN Sport Entertainment, you can compare the effects of market volatilities on Superior Plus and PARKEN Sport 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 Superior Plus with a short position of PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and PARKEN Sport.

Diversification Opportunities for Superior Plus and PARKEN Sport

SuperiorPARKENDiversified AwaySuperiorPARKENDiversified Away100%
-0.3
  Correlation Coefficient

Very good diversification

The 3 months correlation between Superior and PARKEN is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and PARKEN Sport Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKEN Sport Enterta and Superior Plus 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 Superior Plus Corp are associated (or correlated) with PARKEN Sport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKEN Sport Enterta has no effect on the direction of Superior Plus i.e., Superior Plus and PARKEN Sport go up and down completely randomly.

Pair Corralation between Superior Plus and PARKEN Sport

Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the PARKEN Sport. But the stock apears to be less risky and, when comparing its historical volatility, Superior Plus Corp is 1.11 times less risky than PARKEN Sport. The stock trades about -0.03 of its potential returns per unit of risk. The PARKEN Sport Entertainment is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,590  in PARKEN Sport Entertainment on November 19, 2024 and sell it today you would earn a total of  225.00  from holding PARKEN Sport Entertainment or generate 14.15% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Superior Plus Corp  vs.  PARKEN Sport Entertainment

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -50510152025
JavaScript chart by amCharts 3.21.158SP D2V
       Timeline  
Superior Plus Corp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Superior Plus Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Superior Plus is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb3.944.14.24.34.44.5
PARKEN Sport Enterta 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in PARKEN Sport Entertainment are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, PARKEN Sport reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb15.51616.51717.51818.5

Superior Plus and PARKEN Sport Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.15-6.1-4.06-2.010.03532.124.236.358.47 0.020.040.060.08
JavaScript chart by amCharts 3.21.158SP D2V
       Returns  

Pair Trading with Superior Plus and PARKEN Sport

The main advantage of trading using opposite Superior Plus and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, PARKEN Sport 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 PARKEN Sport will offset losses from the drop in PARKEN Sport's long position.
The idea behind Superior Plus Corp and PARKEN Sport Entertainment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

Other Complementary Tools

Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Money Managers
Screen money managers from public funds and ETFs managed around the world