Correlation Between Strix Group and Park Bellheimer
Can any of the company-specific risk be diversified away by investing in both Strix Group and Park Bellheimer 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 Strix Group and Park Bellheimer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strix Group Plc and Park Bellheimer AG, you can compare the effects of market volatilities on Strix Group and Park Bellheimer 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 Strix Group with a short position of Park Bellheimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strix Group and Park Bellheimer.
Diversification Opportunities for Strix Group and Park Bellheimer
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Strix and Park is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Strix Group Plc and Park Bellheimer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Bellheimer AG and Strix Group 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 Strix Group Plc are associated (or correlated) with Park Bellheimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Bellheimer AG has no effect on the direction of Strix Group i.e., Strix Group and Park Bellheimer go up and down completely randomly.
Pair Corralation between Strix Group and Park Bellheimer
Assuming the 90 days horizon Strix Group Plc is expected to under-perform the Park Bellheimer. But the stock apears to be less risky and, when comparing its historical volatility, Strix Group Plc is 6.23 times less risky than Park Bellheimer. The stock trades about -0.21 of its potential returns per unit of risk. The Park Bellheimer AG is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 210.00 in Park Bellheimer AG on October 25, 2024 and sell it today you would earn a total of 46.00 from holding Park Bellheimer AG or generate 21.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Strix Group Plc vs. Park Bellheimer AG
Performance |
Timeline |
Strix Group Plc |
Park Bellheimer AG |
Strix Group and Park Bellheimer Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Strix Group and Park Bellheimer
The main advantage of trading using opposite Strix Group and Park Bellheimer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strix Group position performs unexpectedly, Park Bellheimer 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 Bellheimer will offset losses from the drop in Park Bellheimer's long position.Strix Group vs. FORWARD AIR P | Strix Group vs. RYANAIR HLDGS ADR | Strix Group vs. DETALION GAMES SA | Strix Group vs. TROPHY GAMES DEV |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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