Correlation Between PICKN PAY and STRAX AB
Can any of the company-specific risk be diversified away by investing in both PICKN PAY and STRAX AB 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 STRAX AB 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 STRAX AB SK, you can compare the effects of market volatilities on PICKN PAY and STRAX AB 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 STRAX AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and STRAX AB.
Diversification Opportunities for PICKN PAY and STRAX AB
Pay attention - limited upside
The 3 months correlation between PICKN and STRAX is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and STRAX AB SK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRAX AB SK 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 STRAX AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRAX AB SK has no effect on the direction of PICKN PAY i.e., PICKN PAY and STRAX AB go up and down completely randomly.
Pair Corralation between PICKN PAY and STRAX AB
Assuming the 90 days trading horizon PICKN PAY STORES is expected to generate 0.47 times more return on investment than STRAX AB. However, PICKN PAY STORES is 2.15 times less risky than STRAX AB. It trades about -0.07 of its potential returns per unit of risk. STRAX AB SK is currently generating about -0.1 per unit of risk. If you would invest 154.00 in PICKN PAY STORES on November 2, 2024 and sell it today you would lose (6.00) from holding PICKN PAY STORES or give up 3.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PICKN PAY STORES vs. STRAX AB SK
Performance |
| Timeline |
| PICKN PAY STORES |
| STRAX AB SK |
PICKN PAY and STRAX AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICKN PAY and STRAX AB
The main advantage of trading using opposite PICKN PAY and STRAX AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY position performs unexpectedly, STRAX AB 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 STRAX AB will offset losses from the drop in STRAX AB's long position.| PICKN PAY vs. ADRIATIC METALS LS 013355 | PICKN PAY vs. Harmony Gold Mining | PICKN PAY vs. Coeur Mining | PICKN PAY vs. GRIFFIN MINING LTD |
| STRAX AB vs. ANGANG STEEL H | STRAX AB vs. COSMOSTEEL HLDGS | STRAX AB vs. Nippon Steel | STRAX AB vs. Insteel Industries |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |