Correlation Between SUN ART and Parkson Retail
Can any of the company-specific risk be diversified away by investing in both SUN ART and Parkson Retail 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 SUN ART and Parkson Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SUN ART RETAIL and Parkson Retail Group, you can compare the effects of market volatilities on SUN ART and Parkson Retail 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 SUN ART with a short position of Parkson Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUN ART and Parkson Retail.
Diversification Opportunities for SUN ART and Parkson Retail
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SUN and Parkson is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SUN ART RETAIL and Parkson Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parkson Retail Group and SUN ART 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 SUN ART RETAIL are associated (or correlated) with Parkson Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parkson Retail Group has no effect on the direction of SUN ART i.e., SUN ART and Parkson Retail go up and down completely randomly.
Pair Corralation between SUN ART and Parkson Retail
Assuming the 90 days trading horizon SUN ART RETAIL is expected to generate 0.78 times more return on investment than Parkson Retail. However, SUN ART RETAIL is 1.29 times less risky than Parkson Retail. It trades about 0.09 of its potential returns per unit of risk. Parkson Retail Group is currently generating about 0.05 per unit of risk. If you would invest 21.00 in SUN ART RETAIL on April 21, 2025 and sell it today you would earn a total of 4.00 from holding SUN ART RETAIL or generate 19.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SUN ART RETAIL vs. Parkson Retail Group
Performance |
Timeline |
SUN ART RETAIL |
Parkson Retail Group |
SUN ART and Parkson Retail Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SUN ART and Parkson Retail
The main advantage of trading using opposite SUN ART and Parkson Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUN ART position performs unexpectedly, Parkson Retail 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 Parkson Retail will offset losses from the drop in Parkson Retail's long position.SUN ART vs. NTT DATA | SUN ART vs. ZANAGA IRON ORE | SUN ART vs. Olympic Steel | SUN ART vs. Extra Space Storage |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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