Correlation Between PKSHA TECHNOLOGY and Continental

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

By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and Camden Property Trust, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and Continental 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 PKSHA TECHNOLOGY with a short position of Continental. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and Continental.

Diversification Opportunities for PKSHA TECHNOLOGY and Continental

0.0

Correlation Coefficient

PKSHA TECHNOLOGY  Continental

Pay attention - limited upside

The 3 months correlation between PKSHA and Continental is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and Camden Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camden Property Trust and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC are associated (or correlated) with Continental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camden Property Trust has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and Continental go up and down completely randomly.

Pair Corralation between PKSHA TECHNOLOGY and Continental

If you would invest  0.00  in Camden Property Trust on December 22, 2024 and sell it today you would earn a total of  0.00  from holding Camden Property Trust or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

PKSHA TECHNOLOGY INC  vs.  Camden Property Trust

PKSHA TECHNOLOGY INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days PKSHA TECHNOLOGY INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Camden Property Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Camden Property Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Continental is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PKSHA TECHNOLOGY and Continental

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

The idea behind PKSHA TECHNOLOGY INC and Camden Property Trust 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.