Correlation Between PICKN PAY and Gruppo Mutuionline
Can any of the company-specific risk be diversified away by investing in both PICKN PAY and Gruppo Mutuionline 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 Gruppo Mutuionline 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 Gruppo Mutuionline SpA, you can compare the effects of market volatilities on PICKN PAY and Gruppo Mutuionline 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 Gruppo Mutuionline. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and Gruppo Mutuionline.
Diversification Opportunities for PICKN PAY and Gruppo Mutuionline
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between PICKN and Gruppo is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and Gruppo Mutuionline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo Mutuionline SpA 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 Gruppo Mutuionline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo Mutuionline SpA has no effect on the direction of PICKN PAY i.e., PICKN PAY and Gruppo Mutuionline go up and down completely randomly.
Pair Corralation between PICKN PAY and Gruppo Mutuionline
Assuming the 90 days trading horizon PICKN PAY STORES is expected to generate 1.4 times more return on investment than Gruppo Mutuionline. However, PICKN PAY is 1.4 times more volatile than Gruppo Mutuionline SpA. It trades about 0.08 of its potential returns per unit of risk. Gruppo Mutuionline SpA is currently generating about -0.01 per unit of risk. If you would invest 119.00 in PICKN PAY STORES on November 28, 2024 and sell it today you would earn a total of 26.00 from holding PICKN PAY STORES or generate 21.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PICKN PAY STORES vs. Gruppo Mutuionline SpA
Performance |
| Timeline |
| PICKN PAY STORES |
| Gruppo Mutuionline SpA |
PICKN PAY and Gruppo Mutuionline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICKN PAY and Gruppo Mutuionline
The main advantage of trading using opposite PICKN PAY and Gruppo Mutuionline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY position performs unexpectedly, Gruppo Mutuionline 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 Gruppo Mutuionline will offset losses from the drop in Gruppo Mutuionline's long position.| PICKN PAY vs. Playtech plc | PICKN PAY vs. Fukuyama Transporting Co | PICKN PAY vs. PLAYWAY SA ZY 10 | PICKN PAY vs. SPORTING |
| Gruppo Mutuionline vs. Sinopec Shanghai Petrochemical | Gruppo Mutuionline vs. Eastman Chemical | Gruppo Mutuionline vs. Sekisui Chemical Co | Gruppo Mutuionline vs. Siamgas And Petrochemicals |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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