Correlation Between PICKN PAY and Caseys General
Can any of the company-specific risk be diversified away by investing in both PICKN PAY and Caseys General 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 Caseys General 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 Caseys General Stores, you can compare the effects of market volatilities on PICKN PAY and Caseys General 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 Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and Caseys General.
Diversification Opportunities for PICKN PAY and Caseys General
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PICKN and Caseys is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores 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 Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of PICKN PAY i.e., PICKN PAY and Caseys General go up and down completely randomly.
Pair Corralation between PICKN PAY and Caseys General
Assuming the 90 days trading horizon PICKN PAY STORES is expected to generate 1.2 times more return on investment than Caseys General. However, PICKN PAY is 1.2 times more volatile than Caseys General Stores. It trades about 0.34 of its potential returns per unit of risk. Caseys General Stores is currently generating about 0.21 per unit of risk. If you would invest 127.00 in PICKN PAY STORES on September 1, 2024 and sell it today you would earn a total of 25.00 from holding PICKN PAY STORES or generate 19.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PICKN PAY STORES vs. Caseys General Stores
Performance |
| Timeline |
| PICKN PAY STORES |
| Caseys General Stores |
PICKN PAY and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICKN PAY and Caseys General
The main advantage of trading using opposite PICKN PAY and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| PICKN PAY vs. AOYAMA TRADING | PICKN PAY vs. ON SEMICONDUCTOR | PICKN PAY vs. Taiwan Semiconductor Manufacturing | PICKN PAY vs. BE Semiconductor Industries |
| Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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