Correlation Between Park National and OFX Group

Can any of the company-specific risk be diversified away by investing in both Park National and OFX 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 Park National and OFX Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Park National and OFX Group Ltd, you can compare the effects of market volatilities on Park National and OFX 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 Park National with a short position of OFX Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park National and OFX Group.

Diversification Opportunities for Park National and OFX Group

0.19

Correlation Coefficient

Park National  OFX Group

Average diversification

The 3 months correlation between Park and OFX is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Park National and OFX Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFX Group and Park National 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 Park National are associated (or correlated) with OFX Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFX Group has no effect on the direction of Park National i.e., Park National and OFX Group go up and down completely randomly.

Pair Corralation between Park National and OFX Group

If you would invest  435.00  in OFX Group Ltd on October 24, 2024 and sell it today you would earn a total of  0.00  from holding OFX Group Ltd or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	94.74%
Values	Daily Returns

Park National  vs.  OFX Group Ltd

Park National

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Park National has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Park National is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

OFX Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OFX Group Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Park National and OFX Group

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

The idea behind Park National and OFX Group Ltd 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.