Correlation Between PICKN PAY and LION ONE
Can any of the company-specific risk be diversified away by investing in both PICKN PAY and LION ONE 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 LION ONE 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 LION ONE METALS, you can compare the effects of market volatilities on PICKN PAY and LION ONE 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 LION ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and LION ONE.
Diversification Opportunities for PICKN PAY and LION ONE
Very good diversification
The 3 months correlation between PICKN and LION is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and LION ONE METALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LION ONE METALS 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 LION ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LION ONE METALS has no effect on the direction of PICKN PAY i.e., PICKN PAY and LION ONE go up and down completely randomly.
Pair Corralation between PICKN PAY and LION ONE
Assuming the 90 days trading horizon PICKN PAY STORES is expected to generate 0.27 times more return on investment than LION ONE. However, PICKN PAY STORES is 3.75 times less risky than LION ONE. It trades about 0.04 of its potential returns per unit of risk. LION ONE METALS is currently generating about -0.12 per unit of risk. If you would invest 143.00 in PICKN PAY STORES on November 28, 2024 and sell it today you would earn a total of 2.00 from holding PICKN PAY STORES or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PICKN PAY STORES vs. LION ONE METALS
Performance |
| Timeline |
| PICKN PAY STORES |
| LION ONE METALS |
PICKN PAY and LION ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICKN PAY and LION ONE
The main advantage of trading using opposite PICKN PAY and LION ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY position performs unexpectedly, LION ONE 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 LION ONE will offset losses from the drop in LION ONE's long position.| PICKN PAY vs. Retail Estates NV | PICKN PAY vs. CANON MARKETING JP | PICKN PAY vs. BOS BETTER ONLINE | PICKN PAY vs. YATRA ONLINE DL 0001 |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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