Correlation Between Big Bird and Pakistan National

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

By analyzing existing cross correlation between Big Bird Foods and Pakistan National Shipping, you can compare the effects of market volatilities on Big Bird and Pakistan National 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 Big Bird with a short position of Pakistan National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Bird and Pakistan National.

Diversification Opportunities for Big Bird and Pakistan National

0.0

Correlation Coefficient

Big Bird  Pakistan National

Pay attention - limited upside

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

Pair Corralation between Big Bird and Pakistan National

If you would invest  4,910  in Big Bird Foods on December 24, 2024 and sell it today you would earn a total of  140.00  from holding Big Bird Foods or generate 2.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Big Bird Foods  vs.  Pakistan National Shipping

Big Bird Foods

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Big Bird Foods are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Big Bird may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pakistan National

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pakistan National Shipping 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 somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Big Bird and Pakistan National

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

The idea behind Big Bird Foods and Pakistan National Shipping 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.