Correlation Between PICKN PAY and Park Aerospace
Can any of the company-specific risk be diversified away by investing in both PICKN PAY and Park Aerospace 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 Park Aerospace 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 Park Aerospace Corp, you can compare the effects of market volatilities on PICKN PAY and Park Aerospace 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 Park Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and Park Aerospace.
Diversification Opportunities for PICKN PAY and Park Aerospace
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PICKN and Park is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and Park Aerospace Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Aerospace Corp 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 Park Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Aerospace Corp has no effect on the direction of PICKN PAY i.e., PICKN PAY and Park Aerospace go up and down completely randomly.
Pair Corralation between PICKN PAY and Park Aerospace
Assuming the 90 days trading horizon PICKN PAY STORES is expected to generate 0.92 times more return on investment than Park Aerospace. However, PICKN PAY STORES is 1.09 times less risky than Park Aerospace. It trades about 0.13 of its potential returns per unit of risk. Park Aerospace Corp is currently generating about 0.06 per unit of risk. If you would invest 132.00 in PICKN PAY STORES on October 24, 2024 and sell it today you would earn a total of 22.00 from holding PICKN PAY STORES or generate 16.67% 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. Park Aerospace Corp
Performance |
| Timeline |
| PICKN PAY STORES |
| Park Aerospace Corp |
PICKN PAY and Park Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICKN PAY and Park Aerospace
The main advantage of trading using opposite PICKN PAY and Park Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY position performs unexpectedly, Park Aerospace 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 Park Aerospace will offset losses from the drop in Park Aerospace's long position.| PICKN PAY vs. ALEFARM BREWING DK 05 | PICKN PAY vs. CARSALESCOM | PICKN PAY vs. Granite Construction | PICKN PAY vs. Gruppo Mutuionline SpA |
| Park Aerospace vs. Sterling Construction | Park Aerospace vs. Granite Construction | Park Aerospace vs. Sumitomo Mitsui Construction | Park Aerospace vs. AEGEAN AIRLINES |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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