Correlation Between DATAGROUP and PICKN PAY
Can any of the company-specific risk be diversified away by investing in both DATAGROUP 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 DATAGROUP and PICKN PAY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DATAGROUP SE and PICKN PAY STORES, you can compare the effects of market volatilities on DATAGROUP 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 DATAGROUP with a short position of PICKN PAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATAGROUP and PICKN PAY.
Diversification Opportunities for DATAGROUP and PICKN PAY
Very poor diversification
The 3 months correlation between DATAGROUP and PICKN is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding DATAGROUP SE 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 DATAGROUP 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 DATAGROUP SE 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 DATAGROUP i.e., DATAGROUP and PICKN PAY go up and down completely randomly.
Pair Corralation between DATAGROUP and PICKN PAY
Assuming the 90 days trading horizon DATAGROUP SE is expected to generate 0.63 times more return on investment than PICKN PAY. However, DATAGROUP SE is 1.6 times less risky than PICKN PAY. It trades about -0.02 of its potential returns per unit of risk. PICKN PAY STORES is currently generating about -0.03 per unit of risk. If you would invest 6,312 in DATAGROUP SE on September 3, 2024 and sell it today you would lose (1,742) from holding DATAGROUP SE or give up 27.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
DATAGROUP SE vs. PICKN PAY STORES
Performance |
| Timeline |
| DATAGROUP SE |
| PICKN PAY STORES |
DATAGROUP and PICKN PAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DATAGROUP and PICKN PAY
The main advantage of trading using opposite DATAGROUP and PICKN PAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATAGROUP 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.| DATAGROUP vs. VIRGIN WINES UK | DATAGROUP vs. Marie Brizard Wine | DATAGROUP vs. Microchip Technology Incorporated | DATAGROUP vs. CHINA TONTINE WINES |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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