Correlation Between PARKEN Sport and BankIn Bredygt

Can any of the company-specific risk be diversified away by investing in both PARKEN Sport and BankIn Bredygt 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 BankIn Bredygt 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 BankIn Bredygt Klimaakt, you can compare the effects of market volatilities on PARKEN Sport and BankIn Bredygt 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 BankIn Bredygt. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and BankIn Bredygt.

Diversification Opportunities for PARKEN Sport and BankIn Bredygt

-0.69

Correlation Coefficient

PARKEN Sport  BankIn Bredygt

Excellent diversification

The 3 months correlation between PARKEN and BankIn is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and BankIn Bredygt Klimaakt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankIn Bredygt Klimaakt 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 BankIn Bredygt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankIn Bredygt Klimaakt has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and BankIn Bredygt go up and down completely randomly.

Pair Corralation between PARKEN Sport and BankIn Bredygt

Assuming the 90 days trading horizon PARKEN Sport Entertainment is expected to generate 0.82 times more return on investment than BankIn Bredygt. However, PARKEN Sport Entertainment is 1.21 times less risky than BankIn Bredygt. It trades about 0.15 of its potential returns per unit of risk. BankIn Bredygt Klimaakt is currently generating about 0.01 per unit of risk. If you would invest  12,849  in PARKEN Sport Entertainment on March 28, 2025 and sell it today you would earn a total of  2,451  from holding PARKEN Sport Entertainment or generate 19.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	52.63%
Values	Daily Returns

PARKEN Sport Entertainment  vs.  BankIn Bredygt Klimaakt

PARKEN Sport Enterta

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PARKEN Sport Entertainment are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, PARKEN Sport sustained solid returns over the last few months and may actually be approaching a breakup point.

BankIn Bredygt Klimaakt

Risk-Adjusted Performance

Very Weak

Over the last 90 days BankIn Bredygt Klimaakt has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, BankIn Bredygt is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with PARKEN Sport and BankIn Bredygt

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

The idea behind PARKEN Sport Entertainment and BankIn Bredygt Klimaakt 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.