Correlation Between Pinduoduo and PERSOL HOLDINGS
Can any of the company-specific risk be diversified away by investing in both Pinduoduo and PERSOL HOLDINGS 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 Pinduoduo and PERSOL HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinduoduo and PERSOL HOLDINGS LTD, you can compare the effects of market volatilities on Pinduoduo and PERSOL HOLDINGS 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 Pinduoduo with a short position of PERSOL HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinduoduo and PERSOL HOLDINGS.
Diversification Opportunities for Pinduoduo and PERSOL HOLDINGS
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pinduoduo and PERSOL is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Pinduoduo and PERSOL HOLDINGS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PERSOL HOLDINGS LTD and Pinduoduo 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 Pinduoduo are associated (or correlated) with PERSOL HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PERSOL HOLDINGS LTD has no effect on the direction of Pinduoduo i.e., Pinduoduo and PERSOL HOLDINGS go up and down completely randomly.
Pair Corralation between Pinduoduo and PERSOL HOLDINGS
Assuming the 90 days trading horizon Pinduoduo is expected to under-perform the PERSOL HOLDINGS. In addition to that, Pinduoduo is 1.82 times more volatile than PERSOL HOLDINGS LTD. It trades about -0.27 of its total potential returns per unit of risk. PERSOL HOLDINGS LTD is currently generating about -0.16 per unit of volatility. If you would invest 141.00 in PERSOL HOLDINGS LTD on August 30, 2024 and sell it today you would lose (9.00) from holding PERSOL HOLDINGS LTD or give up 6.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pinduoduo vs. PERSOL HOLDINGS LTD
Performance |
| Timeline |
| Pinduoduo |
| PERSOL HOLDINGS LTD |
Pinduoduo and PERSOL HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinduoduo and PERSOL HOLDINGS
The main advantage of trading using opposite Pinduoduo and PERSOL HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinduoduo position performs unexpectedly, PERSOL HOLDINGS 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 PERSOL HOLDINGS will offset losses from the drop in PERSOL HOLDINGS's long position.| Pinduoduo vs. Amazon Inc | Pinduoduo vs. Amazon Inc | Pinduoduo vs. Alibaba Group Holdings | Pinduoduo vs. JD Inc Adr |
| PERSOL HOLDINGS vs. Recruit Holdings Co | PERSOL HOLDINGS vs. Randstad NV | PERSOL HOLDINGS vs. TRINET GROUP INC | PERSOL HOLDINGS vs. TONGDAO LIEPGR DL 0001 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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