Correlation Between PKSHA TECHNOLOGY and EAT WELL
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and EAT WELL 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 PKSHA TECHNOLOGY and EAT WELL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and EAT WELL INVESTMENT, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and EAT WELL 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 PKSHA TECHNOLOGY with a short position of EAT WELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and EAT WELL.
Diversification Opportunities for PKSHA TECHNOLOGY and EAT WELL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PKSHA and EAT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and EAT WELL INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAT WELL INVESTMENT and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC are associated (or correlated) with EAT WELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAT WELL INVESTMENT has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and EAT WELL go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and EAT WELL
If you would invest 2,100 in PKSHA TECHNOLOGY INC on September 2, 2024 and sell it today you would earn a total of 500.00 from holding PKSHA TECHNOLOGY INC or generate 23.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. EAT WELL INVESTMENT
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| EAT WELL INVESTMENT |
PKSHA TECHNOLOGY and EAT WELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and EAT WELL
The main advantage of trading using opposite PKSHA TECHNOLOGY and EAT WELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY position performs unexpectedly, EAT WELL 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 EAT WELL will offset losses from the drop in EAT WELL's long position.| PKSHA TECHNOLOGY vs. Microsoft | PKSHA TECHNOLOGY vs. Superior Plus Corp | PKSHA TECHNOLOGY vs. NMI Holdings | PKSHA TECHNOLOGY vs. Origin Agritech |
| EAT WELL vs. Ameriprise Financial | EAT WELL vs. Superior Plus Corp | EAT WELL vs. NMI Holdings | EAT WELL vs. Origin Agritech |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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