PriceSmart Correlations

PSMT Stock

USD 90.92 0.96 1.07%

The current 90-days correlation between PriceSmart and Dollarama is 0.17 (i.e., Average diversification). The correlation of PriceSmart is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

PriceSmart Correlation With Market

Poor diversification

The correlation between PriceSmart and DJI is 0.63 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding PriceSmart and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in PriceSmart. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.

For more information on how to buy PriceSmart Stock please use our How to Invest in PriceSmart guide.

Moving together with PriceSmart Stock

0.61

VITL

Vital Farms

Pair Corr

Moving against PriceSmart Stock

0.58	MO	Altria Group	Pair Corr
0.39	IMKTA	Ingles Markets Earnings Call This Week	Pair Corr
0.35	ASAI	Sendas Distribuidora	Pair Corr
0.33	PM	Philip Morris Intern	Pair Corr
0.36	EAST	Eastside Distilling	Pair Corr
0.35	WEST	Westrock Coffee	Pair Corr
0.35	CENTA	Central Garden Pet	Pair Corr
0.34	FARM	Farmer Bros	Pair Corr
0.31	EDBL	Edible Garden AG	Pair Corr

Related Correlations Analysis

	WMMVY	DQJCY	DLMAF	DG	BIG	DLTR	BJ	WMT	TGT
WMMVY		0.65	-0.64	0.6	0.82	0.68	-0.68	-0.83	0.53	WMMVY
DQJCY	0.65		-0.56	0.11	0.53	0.17	-0.63	-0.6	0.3	DQJCY
DLMAF	-0.64	-0.56		-0.3	-0.71	-0.38	0.79	0.71	-0.09	DLMAF
DG	0.6	0.11	-0.3		0.63	0.91	-0.28	-0.62	0.38	DG
BIG	0.82	0.53	-0.71	0.63		0.69	-0.74	-0.92	0.4	BIG
DLTR	0.68	0.17	-0.38	0.91	0.69		-0.37	-0.67	0.34	DLTR
BJ	-0.68	-0.63	0.79	-0.28	-0.74	-0.37		0.78	-0.34	BJ
WMT	-0.83	-0.6	0.71	-0.62	-0.92	-0.67	0.78		-0.56	WMT
TGT	0.53	0.3	-0.09	0.38	0.4	0.34	-0.34	-0.56		TGT
	WMMVY	DQJCY	DLMAF	DG	BIG	DLTR	BJ	WMT	TGT

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

DLTR	+ 0.91	DG
BIG	+ 0.82	WMMVY
BJ	+ 0.79	DLMAF
WMT	+ 0.78	BJ
WMT	+ 0.71	DLMAF
DLTR	+ 0.69	BIG

High negative correlations

WMT	- 0.92	BIG
WMT	- 0.83	WMMVY
BJ	- 0.74	BIG
BIG	- 0.71	DLMAF
BJ	- 0.68	WMMVY
WMT	- 0.67	DLTR

Risk-Adjusted Indicators

There is a big difference between PriceSmart Stock performing well and PriceSmart Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze PriceSmart's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
WMMVY	1.62	(0.35)	0.00	(0.52)	0.00	0.00	3.08	(2.85)	10.62
DQJCY	1.37	(0.09)	0.00	(0.05)	0.00	0.00	2.61	(2.10)	10.03
DLMAF	1.00	0.06	(0.01)	0.27	1.22	(1.11)	2.42	(2.16)	9.62
DG	1.80	(0.55)	0.00	0.84	0.00	0.00	2.69	(3.31)	32.77
BIG	8.08	(2.79)	0.00	(4.28)	0.00	0.00	21.35	(16.67)	103.00
DLTR	2.24	(0.49)	0.00	1.92	0.00	0.00	3.63	(3.83)	22.16
BJ	1.15	0.19	0.11	0.43	1.00	(1.36)	2.56	(1.70)	5.52
WMT	0.78	0.25	0.14	2.25	0.71	(0.90)	1.69	(1.27)	4.33
TGT	1.44	(0.31)	0.00	(1.63)	0.00	0.00	2.34	(2.45)	24.32

PriceSmart Corporate Executives

Elected by the shareholders, the PriceSmart's board of directors comprises two types of representatives: PriceSmart inside directors who are chosen from within the company, and outside directors, selected externally and held independent of PriceSmart. The board's role is to monitor PriceSmart's management team and ensure that shareholders' interests are well served. PriceSmart's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, PriceSmart's outside directors are responsible for providing unbiased perspectives on the board's policies.

	Michael CPA	CFO VP	Profile
	William Naylon	COO and Executive VP	Profile

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