Correlation Between PARKEN Sport and Getlink SE
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and Getlink SE 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 Getlink SE 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 Getlink SE, you can compare the effects of market volatilities on PARKEN Sport and Getlink SE 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 Getlink SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and Getlink SE.
Diversification Opportunities for PARKEN Sport and Getlink SE
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PARKEN and Getlink is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and Getlink SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getlink SE 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 Getlink SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getlink SE has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and Getlink SE go up and down completely randomly.
Pair Corralation between PARKEN Sport and Getlink SE
Assuming the 90 days horizon PARKEN Sport Entertainment is expected to generate 1.56 times more return on investment than Getlink SE. However, PARKEN Sport is 1.56 times more volatile than Getlink SE. It trades about 0.08 of its potential returns per unit of risk. Getlink SE is currently generating about 0.07 per unit of risk. If you would invest 1,685 in PARKEN Sport Entertainment on December 27, 2024 and sell it today you would earn a total of 165.00 from holding PARKEN Sport Entertainment or generate 9.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PARKEN Sport Entertainment vs. Getlink SE
Performance |
Timeline |
PARKEN Sport Enterta |
Getlink SE |
PARKEN Sport and Getlink SE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PARKEN Sport and Getlink SE
The main advantage of trading using opposite PARKEN Sport and Getlink SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, Getlink SE 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 Getlink SE will offset losses from the drop in Getlink SE's long position.PARKEN Sport vs. Transport International Holdings | PARKEN Sport vs. BROADPEAK SA EO | PARKEN Sport vs. Kaufman Broad SA | PARKEN Sport vs. Media and Games |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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