Correlation Between PICKN PAY and PKSHA TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both PICKN PAY and PKSHA TECHNOLOGY 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 PICKN PAY and PKSHA TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PICKN PAY STORES and PKSHA TECHNOLOGY INC, you can compare the effects of market volatilities on PICKN PAY and PKSHA TECHNOLOGY 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 PICKN PAY with a short position of PKSHA TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and PKSHA TECHNOLOGY.
Diversification Opportunities for PICKN PAY and PKSHA TECHNOLOGY
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PICKN and PKSHA is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and PKSHA TECHNOLOGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKSHA TECHNOLOGY INC and PICKN PAY 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 PICKN PAY STORES are associated (or correlated) with PKSHA TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKSHA TECHNOLOGY INC has no effect on the direction of PICKN PAY i.e., PICKN PAY and PKSHA TECHNOLOGY go up and down completely randomly.
Pair Corralation between PICKN PAY and PKSHA TECHNOLOGY
Assuming the 90 days trading horizon PICKN PAY STORES is expected to generate 0.55 times more return on investment than PKSHA TECHNOLOGY. However, PICKN PAY STORES is 1.82 times less risky than PKSHA TECHNOLOGY. It trades about -0.06 of its potential returns per unit of risk. PKSHA TECHNOLOGY INC is currently generating about -0.08 per unit of risk. If you would invest 154.00 in PICKN PAY STORES on December 2, 2024 and sell it today you would lose (13.00) from holding PICKN PAY STORES or give up 8.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PICKN PAY STORES vs. PKSHA TECHNOLOGY INC
Performance |
Timeline |
PICKN PAY STORES |
PKSHA TECHNOLOGY INC |
PICKN PAY and PKSHA TECHNOLOGY Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PICKN PAY and PKSHA TECHNOLOGY
The main advantage of trading using opposite PICKN PAY and PKSHA TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY position performs unexpectedly, PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY will offset losses from the drop in PKSHA TECHNOLOGY's long position.PICKN PAY vs. Calibre Mining Corp | PICKN PAY vs. ONWARD MEDICAL BV | PICKN PAY vs. IMAGIN MEDICAL INC | PICKN PAY vs. Genertec Universal Medical |
PKSHA TECHNOLOGY vs. PLAYTECH | PKSHA TECHNOLOGY vs. Columbia Sportswear | PKSHA TECHNOLOGY vs. PLAYMATES HLDGS NEW | PKSHA TECHNOLOGY vs. Entravision Communications |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |