Correlation Between PKSHA TECHNOLOGY and FARM 51
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and FARM 51 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 FARM 51 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 FARM 51 GROUP, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and FARM 51 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 FARM 51. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and FARM 51.
Diversification Opportunities for PKSHA TECHNOLOGY and FARM 51
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PKSHA and FARM is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and FARM 51 GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FARM 51 GROUP 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 FARM 51. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FARM 51 GROUP has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and FARM 51 go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and FARM 51
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to generate 1.2 times more return on investment than FARM 51. However, PKSHA TECHNOLOGY is 1.2 times more volatile than FARM 51 GROUP. It trades about 0.06 of its potential returns per unit of risk. FARM 51 GROUP is currently generating about -0.03 per unit of risk. If you would invest 1,150 in PKSHA TECHNOLOGY INC on October 11, 2024 and sell it today you would earn a total of 1,190 from holding PKSHA TECHNOLOGY INC or generate 103.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. FARM 51 GROUP
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| FARM 51 GROUP |
PKSHA TECHNOLOGY and FARM 51 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and FARM 51
The main advantage of trading using opposite PKSHA TECHNOLOGY and FARM 51 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY position performs unexpectedly, FARM 51 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 FARM 51 will offset losses from the drop in FARM 51's long position.| PKSHA TECHNOLOGY vs. Rocket Internet SE | PKSHA TECHNOLOGY vs. Salesforce | PKSHA TECHNOLOGY vs. CRISPR Therapeutics AG | PKSHA TECHNOLOGY vs. China Communications Services |
| FARM 51 vs. PKSHA TECHNOLOGY INC | FARM 51 vs. Warner Music Group | FARM 51 vs. BJs Restaurants | FARM 51 vs. ETFS Coffee ETC |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |