Correlation Between Prashkovsky and Shikun Binui

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

By analyzing existing cross correlation between Prashkovsky and Shikun Binui, you can compare the effects of market volatilities on Prashkovsky and Shikun Binui 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 Prashkovsky with a short position of Shikun Binui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prashkovsky and Shikun Binui.

Diversification Opportunities for Prashkovsky and Shikun Binui

0.71

Correlation Coefficient

Prashkovsky  Shikun Binui

Poor diversification

The 3 months correlation between Prashkovsky and Shikun is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Prashkovsky and Shikun Binui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shikun Binui and Prashkovsky 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 Prashkovsky are associated (or correlated) with Shikun Binui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shikun Binui has no effect on the direction of Prashkovsky i.e., Prashkovsky and Shikun Binui go up and down completely randomly.

Pair Corralation between Prashkovsky and Shikun Binui

Assuming the 90 days trading horizon Prashkovsky is expected to under-perform the Shikun Binui. But the stock apears to be less risky and, when comparing its historical volatility, Prashkovsky is 1.16 times less risky than Shikun Binui. The stock trades about -0.12 of its potential returns per unit of risk. The Shikun Binui is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest  139,900  in Shikun Binui on December 3, 2024 and sell it today you would lose (21,300) from holding Shikun Binui or give up 15.23% of portfolio value over 90 days.

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

Prashkovsky  vs.  Shikun Binui

Prashkovsky

Risk-Adjusted Performance

Very Weak

Over the last 90 days Prashkovsky 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.

Shikun Binui

Risk-Adjusted Performance

Very Weak

Over the last 90 days Shikun Binui 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 Prashkovsky and Shikun Binui

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

The idea behind Prashkovsky and Shikun Binui 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .