Correlation Between ZhongAn Online and PICKN PAY
Can any of the company-specific risk be diversified away by investing in both ZhongAn Online and PICKN PAY 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 ZhongAn Online and PICKN PAY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZhongAn Online P and PICKN PAY STORES, you can compare the effects of market volatilities on ZhongAn Online and PICKN PAY 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 ZhongAn Online with a short position of PICKN PAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZhongAn Online and PICKN PAY.
Diversification Opportunities for ZhongAn Online and PICKN PAY
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ZhongAn and PICKN is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding ZhongAn Online P and PICKN PAY STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICKN PAY STORES and ZhongAn Online 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 ZhongAn Online P are associated (or correlated) with PICKN PAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICKN PAY STORES has no effect on the direction of ZhongAn Online i.e., ZhongAn Online and PICKN PAY go up and down completely randomly.
Pair Corralation between ZhongAn Online and PICKN PAY
Assuming the 90 days trading horizon ZhongAn Online is expected to generate 6.54 times less return on investment than PICKN PAY. In addition to that, ZhongAn Online is 1.91 times more volatile than PICKN PAY STORES. It trades about 0.01 of its total potential returns per unit of risk. PICKN PAY STORES is currently generating about 0.12 per unit of volatility. If you would invest 113.00 in PICKN PAY STORES on October 18, 2024 and sell it today you would earn a total of 47.00 from holding PICKN PAY STORES or generate 41.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZhongAn Online P vs. PICKN PAY STORES
Performance |
| Timeline |
| ZhongAn Online P |
| PICKN PAY STORES |
ZhongAn Online and PICKN PAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZhongAn Online and PICKN PAY
The main advantage of trading using opposite ZhongAn Online and PICKN PAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZhongAn Online position performs unexpectedly, PICKN PAY 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 PICKN PAY will offset losses from the drop in PICKN PAY's long position.| ZhongAn Online vs. Firan Technology Group | ZhongAn Online vs. ORMAT TECHNOLOGIES | ZhongAn Online vs. AAC TECHNOLOGHLDGADR | ZhongAn Online vs. AECOM TECHNOLOGY |
| PICKN PAY vs. VIENNA INSURANCE GR | PICKN PAY vs. The Hanover Insurance | PICKN PAY vs. ZhongAn Online P | PICKN PAY vs. REVO INSURANCE SPA |
Check out your portfolio center.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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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