Correlation Between Pingtan Marine and Mr Price

Can any of the company-specific risk be diversified away by investing in both Pingtan Marine and Mr Price 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 Pingtan Marine and Mr Price into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pingtan Marine Enterprise and Mr Price Group, you can compare the effects of market volatilities on Pingtan Marine and Mr Price 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 Pingtan Marine with a short position of Mr Price. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pingtan Marine and Mr Price.

Diversification Opportunities for Pingtan Marine and Mr Price

0.0

Correlation Coefficient

Pingtan Marine  Mr Price

Pay attention - limited upside

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

Pair Corralation between Pingtan Marine and Mr Price

Considering the 90-day investment horizon Pingtan Marine Enterprise is expected to under-perform the Mr Price. But the stock apears to be less risky and, when comparing its historical volatility, Pingtan Marine Enterprise is 1.05 times less risky than Mr Price. The stock trades about -0.22 of its potential returns per unit of risk. The Mr Price Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  942.00  in Mr Price Group on October 9, 2024 and sell it today you would earn a total of  561.00  from holding Mr Price Group or generate 59.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	7.97%
Values	Daily Returns

Pingtan Marine Enterprise  vs.  Mr Price Group

Pingtan Marine Enterprise

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Pingtan Marine Enterprise has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Pingtan Marine is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Mr Price Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mr Price Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Mr Price is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pingtan Marine and Mr Price

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

The idea behind Pingtan Marine Enterprise and Mr Price Group 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.