Correlation Between PICKN PAY and DFDS AS
Can any of the company-specific risk be diversified away by investing in both PICKN PAY and DFDS AS 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 PICKN PAY and DFDS AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PICKN PAY STORES and DFDS AS, you can compare the effects of market volatilities on PICKN PAY and DFDS AS 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 PICKN PAY with a short position of DFDS AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and DFDS AS.
Diversification Opportunities for PICKN PAY and DFDS AS
Average diversification
The 3 months correlation between PICKN and DFDS is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and DFDS AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DFDS AS and PICKN PAY 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 PICKN PAY STORES are associated (or correlated) with DFDS AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DFDS AS has no effect on the direction of PICKN PAY i.e., PICKN PAY and DFDS AS go up and down completely randomly.
Pair Corralation between PICKN PAY and DFDS AS
Assuming the 90 days trading horizon PICKN PAY STORES is expected to generate 0.54 times more return on investment than DFDS AS. However, PICKN PAY STORES is 1.86 times less risky than DFDS AS. It trades about -0.13 of its potential returns per unit of risk. DFDS AS is currently generating about -0.26 per unit of risk. If you would invest 153.00 in PICKN PAY STORES on November 4, 2024 and sell it today you would lose (11.00) from holding PICKN PAY STORES or give up 7.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PICKN PAY STORES vs. DFDS AS
Performance |
| Timeline |
| PICKN PAY STORES |
| DFDS AS |
PICKN PAY and DFDS AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICKN PAY and DFDS AS
The main advantage of trading using opposite PICKN PAY and DFDS AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY position performs unexpectedly, DFDS AS 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 DFDS AS will offset losses from the drop in DFDS AS's long position.| PICKN PAY vs. Adtalem Global Education | PICKN PAY vs. Mitsubishi Materials | PICKN PAY vs. SANOK RUBBER ZY | PICKN PAY vs. Strategic Education |
| DFDS AS vs. Scientific Games | DFDS AS vs. Extra Space Storage | DFDS AS vs. GigaMedia | DFDS AS vs. HOCHSCHILD MINING |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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