Correlation Between PDD Holdings and Savers Value
Can any of the company-specific risk be diversified away by investing in both PDD Holdings and Savers Value 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 PDD Holdings and Savers Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PDD Holdings and Savers Value Village,, you can compare the effects of market volatilities on PDD Holdings and Savers Value 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 PDD Holdings with a short position of Savers Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of PDD Holdings and Savers Value.
Diversification Opportunities for PDD Holdings and Savers Value
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PDD and Savers is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding PDD Holdings and Savers Value Village, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savers Value Village, and PDD Holdings 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 PDD Holdings are associated (or correlated) with Savers Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savers Value Village, has no effect on the direction of PDD Holdings i.e., PDD Holdings and Savers Value go up and down completely randomly.
Pair Corralation between PDD Holdings and Savers Value
Considering the 90-day investment horizon PDD Holdings is expected to under-perform the Savers Value. But the stock apears to be less risky and, when comparing its historical volatility, PDD Holdings is 1.21 times less risky than Savers Value. The stock trades about -0.32 of its potential returns per unit of risk. The Savers Value Village, is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,028 in Savers Value Village, on September 2, 2024 and sell it today you would lose (93.00) from holding Savers Value Village, or give up 9.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PDD Holdings vs. Savers Value Village,
Performance |
| Timeline |
| PDD Holdings |
| Savers Value Village, |
PDD Holdings and Savers Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PDD Holdings and Savers Value
The main advantage of trading using opposite PDD Holdings and Savers Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PDD Holdings position performs unexpectedly, Savers Value 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 Savers Value will offset losses from the drop in Savers Value's long position.| PDD Holdings vs. Alibaba Group Holding | PDD Holdings vs. Sea | PDD Holdings vs. MercadoLibre | PDD Holdings vs. Vipshop Holdings Limited |
| Savers Value vs. PDD Holdings | Savers Value vs. JD Inc Adr | Savers Value vs. Alibaba Group Holding | Savers Value vs. Sea |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |