Correlation Between PKSHA TECHNOLOGY and CH Robinson

Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and CH Robinson 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 CH Robinson 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 CH Robinson Worldwide, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and CH Robinson 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 CH Robinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and CH Robinson.

Diversification Opportunities for PKSHA TECHNOLOGY and CH Robinson

-0.07

Correlation Coefficient

PKSHA TECHNOLOGY  CH Robinson

Good diversification

The 3 months correlation between PKSHA and CH1A is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and CH Robinson Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CH Robinson Worldwide 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 CH Robinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CH Robinson Worldwide has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and CH Robinson go up and down completely randomly.

Pair Corralation between PKSHA TECHNOLOGY and CH Robinson

Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to under-perform the CH Robinson. In addition to that, PKSHA TECHNOLOGY is 2.25 times more volatile than CH Robinson Worldwide. It trades about -0.05 of its total potential returns per unit of risk. CH Robinson Worldwide is currently generating about -0.09 per unit of volatility. If you would invest  10,036  in CH Robinson Worldwide on December 20, 2024 and sell it today you would lose (936.00) from holding CH Robinson Worldwide or give up 9.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

PKSHA TECHNOLOGY INC  vs.  CH Robinson Worldwide

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 latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

CH Robinson Worldwide

Risk-Adjusted Performance

Very Weak

Over the last 90 days CH Robinson Worldwide has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with PKSHA TECHNOLOGY and CH Robinson

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

The idea behind PKSHA TECHNOLOGY INC and CH Robinson Worldwide 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.