Correlation Between PICKN PAY and Yuexiu Transport

Can any of the company-specific risk be diversified away by investing in both PICKN PAY and Yuexiu Transport 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 Yuexiu Transport 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 Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on PICKN PAY and Yuexiu Transport 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 Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and Yuexiu Transport.

Diversification Opportunities for PICKN PAY and Yuexiu Transport

0.49

Correlation Coefficient

PICKN PAY  Yuexiu Transport

Very weak diversification

The 3 months correlation between PICKN and Yuexiu is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and Yuexiu Transport Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuexiu Transport Inf 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 Yuexiu Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuexiu Transport Inf has no effect on the direction of PICKN PAY i.e., PICKN PAY and Yuexiu Transport go up and down completely randomly.

Pair Corralation between PICKN PAY and Yuexiu Transport

Assuming the 90 days trading horizon PICKN PAY STORES is expected to generate 1.34 times more return on investment than Yuexiu Transport. However, PICKN PAY is 1.34 times more volatile than Yuexiu Transport Infrastructure. It trades about -0.04 of its potential returns per unit of risk. Yuexiu Transport Infrastructure is currently generating about -0.08 per unit of risk. If you would invest  150.00  in PICKN PAY STORES on December 27, 2024 and sell it today you would lose (12.00) from holding PICKN PAY STORES or give up 8.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

PICKN PAY STORES  vs.  Yuexiu Transport Infrastructur

PICKN PAY STORES

Risk-Adjusted Performance

Very Weak

Over the last 90 days PICKN PAY STORES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PICKN PAY is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Yuexiu Transport Inf

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yuexiu Transport Infrastructure has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile 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 PICKN PAY and Yuexiu Transport

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

The idea behind PICKN PAY STORES and Yuexiu Transport Infrastructure 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.