Correlation Between PICKN PAY and Aurubis AG

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

Diversification Opportunities for PICKN PAY and Aurubis AG

-0.69

Correlation Coefficient

PICKN PAY  Aurubis AG

Excellent diversification

The 3 months correlation between PICKN and Aurubis is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and Aurubis AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurubis AG 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 Aurubis AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurubis AG has no effect on the direction of PICKN PAY i.e., PICKN PAY and Aurubis AG go up and down completely randomly.

Pair Corralation between PICKN PAY and Aurubis AG

Assuming the 90 days trading horizon PICKN PAY STORES is expected to under-perform the Aurubis AG. In addition to that, PICKN PAY is 1.29 times more volatile than Aurubis AG. It trades about -0.05 of its total potential returns per unit of risk. Aurubis AG is currently generating about 0.13 per unit of volatility. If you would invest  7,660  in Aurubis AG on December 24, 2024 and sell it today you would earn a total of  1,295  from holding Aurubis AG or generate 16.91% return on investment over 90 days.

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

PICKN PAY STORES  vs.  Aurubis AG

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 latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Aurubis AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aurubis AG are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Aurubis AG unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PICKN PAY and Aurubis AG

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

The idea behind PICKN PAY STORES and Aurubis AG 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.