Correlation Between Currys PLC and PICKN PAY
Can any of the company-specific risk be diversified away by investing in both Currys PLC 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 Currys PLC and PICKN PAY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Currys PLC and PICKN PAY STORES, you can compare the effects of market volatilities on Currys PLC 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 Currys PLC with a short position of PICKN PAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Currys PLC and PICKN PAY.
Diversification Opportunities for Currys PLC and PICKN PAY
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Currys and PICKN is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Currys PLC 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 Currys PLC 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 Currys PLC 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 Currys PLC i.e., Currys PLC and PICKN PAY go up and down completely randomly.
Pair Corralation between Currys PLC and PICKN PAY
Assuming the 90 days horizon Currys PLC is expected to generate 0.92 times more return on investment than PICKN PAY. However, Currys PLC is 1.09 times less risky than PICKN PAY. It trades about 0.29 of its potential returns per unit of risk. PICKN PAY STORES is currently generating about -0.13 per unit of risk. If you would invest 17,915 in Currys PLC on November 4, 2024 and sell it today you would earn a total of 2,385 from holding Currys PLC or generate 13.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Currys PLC vs. PICKN PAY STORES
Performance |
| Timeline |
| Currys PLC |
| PICKN PAY STORES |
Currys PLC and PICKN PAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Currys PLC and PICKN PAY
The main advantage of trading using opposite Currys PLC and PICKN PAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Currys PLC 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.| Currys PLC vs. Tianjin Capital Environmental | Currys PLC vs. PT Steel Pipe | Currys PLC vs. COSMOSTEEL HLDGS | Currys PLC vs. OPKO HEALTH |
| PICKN PAY vs. Adtalem Global Education | PICKN PAY vs. Mitsubishi Materials | PICKN PAY vs. SANOK RUBBER ZY | PICKN PAY vs. Strategic Education |
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 Stocks Directory module to find actively traded stocks across global markets.
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