Correlation Between PKSHA TECHNOLOGY and Caseys General
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and Caseys General 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 Caseys General 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 Caseys General Stores, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and Caseys General 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 Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and Caseys General.
Diversification Opportunities for PKSHA TECHNOLOGY and Caseys General
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PKSHA and Caseys is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores 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 Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and Caseys General go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and Caseys General
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to under-perform the Caseys General. In addition to that, PKSHA TECHNOLOGY is 2.1 times more volatile than Caseys General Stores. It trades about -0.18 of its total potential returns per unit of risk. Caseys General Stores is currently generating about 0.0 per unit of volatility. If you would invest 38,600 in Caseys General Stores on October 28, 2024 and sell it today you would earn a total of 0.00 from holding Caseys General Stores or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. Caseys General Stores
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| Caseys General Stores |
PKSHA TECHNOLOGY and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and Caseys General
The main advantage of trading using opposite PKSHA TECHNOLOGY and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| PKSHA TECHNOLOGY vs. Microsoft | PKSHA TECHNOLOGY vs. ADYEN NV UNSPADR001 | PKSHA TECHNOLOGY vs. Square Inc | PKSHA TECHNOLOGY vs. CrowdStrike Holdings |
| Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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