Correlation Between PICKN PAY and OPERA SOFTWARE
Can any of the company-specific risk be diversified away by investing in both PICKN PAY and OPERA SOFTWARE 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 OPERA SOFTWARE 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 OPERA SOFTWARE, you can compare the effects of market volatilities on PICKN PAY and OPERA SOFTWARE 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 OPERA SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and OPERA SOFTWARE.
Diversification Opportunities for PICKN PAY and OPERA SOFTWARE
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PICKN and OPERA is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and OPERA SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPERA SOFTWARE 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 OPERA SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPERA SOFTWARE has no effect on the direction of PICKN PAY i.e., PICKN PAY and OPERA SOFTWARE go up and down completely randomly.
Pair Corralation between PICKN PAY and OPERA SOFTWARE
Assuming the 90 days trading horizon PICKN PAY is expected to generate 1.21 times less return on investment than OPERA SOFTWARE. In addition to that, PICKN PAY is 1.1 times more volatile than OPERA SOFTWARE. It trades about 0.13 of its total potential returns per unit of risk. OPERA SOFTWARE is currently generating about 0.18 per unit of volatility. If you would invest 62.00 in OPERA SOFTWARE on October 18, 2024 and sell it today you would earn a total of 3.00 from holding OPERA SOFTWARE or generate 4.84% 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. OPERA SOFTWARE
Performance |
| Timeline |
| PICKN PAY STORES |
| OPERA SOFTWARE |
PICKN PAY and OPERA SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICKN PAY and OPERA SOFTWARE
The main advantage of trading using opposite PICKN PAY and OPERA SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY position performs unexpectedly, OPERA SOFTWARE 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 OPERA SOFTWARE will offset losses from the drop in OPERA SOFTWARE's long position.| PICKN PAY vs. VIENNA INSURANCE GR | PICKN PAY vs. The Hanover Insurance | PICKN PAY vs. ZhongAn Online P | PICKN PAY vs. REVO INSURANCE SPA |
| OPERA SOFTWARE vs. Sunny Optical Technology | OPERA SOFTWARE vs. PICKN PAY STORES | OPERA SOFTWARE vs. BURLINGTON STORES | OPERA SOFTWARE vs. Kingdee International Software |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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