Correlation Between PARKEN Sport and DBS GROUP

Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and DBS GROUP 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 PARKEN Sport and DBS GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PARKEN Sport Entertainment and DBS GROUP HLDGS, you can compare the effects of market volatilities on PARKEN Sport and DBS GROUP 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 PARKEN Sport with a short position of DBS GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and DBS GROUP.

Diversification Opportunities for PARKEN Sport and DBS GROUP

0.0

Correlation Coefficient

PARKEN Sport  DBS GROUP

Pay attention - limited upside

The 3 months correlation between PARKEN and DBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and DBS GROUP HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBS GROUP HLDGS and PARKEN Sport 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 PARKEN Sport Entertainment are associated (or correlated) with DBS GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBS GROUP HLDGS has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and DBS GROUP go up and down completely randomly.

Pair Corralation between PARKEN Sport and DBS GROUP

If you would invest  1,650  in PARKEN Sport Entertainment on December 20, 2024 and sell it today you would earn a total of  105.00  from holding PARKEN Sport Entertainment or generate 6.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

PARKEN Sport Entertainment  vs.  DBS GROUP HLDGS

PARKEN Sport Enterta

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PARKEN Sport Entertainment are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PARKEN Sport may actually be approaching a critical reversion point that can send shares even higher in April 2025.

DBS GROUP HLDGS

Risk-Adjusted Performance

Weak

Over the last 90 days DBS GROUP HLDGS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, DBS GROUP is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with PARKEN Sport and DBS GROUP

The main advantage of trading using opposite PARKEN Sport and DBS GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, DBS GROUP 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 DBS GROUP will offset losses from the drop in DBS GROUP's long position.

The idea behind PARKEN Sport Entertainment and DBS GROUP HLDGS 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.

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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.