Correlation Between PICKN PAY and REGION GROUP
Can any of the company-specific risk be diversified away by investing in both PICKN PAY and REGION GROUP 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 REGION GROUP 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 REGION GROUP STAPLED, you can compare the effects of market volatilities on PICKN PAY and REGION GROUP 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 REGION GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and REGION GROUP.
Diversification Opportunities for PICKN PAY and REGION GROUP
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between PICKN and REGION is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and REGION GROUP STAPLED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGION GROUP STAPLED 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 REGION GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGION GROUP STAPLED has no effect on the direction of PICKN PAY i.e., PICKN PAY and REGION GROUP go up and down completely randomly.
Pair Corralation between PICKN PAY and REGION GROUP
Assuming the 90 days trading horizon PICKN PAY STORES is expected to generate 2.3 times more return on investment than REGION GROUP. However, PICKN PAY is 2.3 times more volatile than REGION GROUP STAPLED. It trades about 0.34 of its potential returns per unit of risk. REGION GROUP STAPLED is currently generating about 0.1 per unit of risk. If you would invest 127.00 in PICKN PAY STORES on September 1, 2024 and sell it today you would earn a total of 25.00 from holding PICKN PAY STORES or generate 19.69% 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. REGION GROUP STAPLED
Performance |
| Timeline |
| PICKN PAY STORES |
| REGION GROUP STAPLED |
PICKN PAY and REGION GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICKN PAY and REGION GROUP
The main advantage of trading using opposite PICKN PAY and REGION GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY position performs unexpectedly, REGION GROUP 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 REGION GROUP will offset losses from the drop in REGION GROUP's long position.| PICKN PAY vs. AOYAMA TRADING | PICKN PAY vs. ON SEMICONDUCTOR | PICKN PAY vs. Taiwan Semiconductor Manufacturing | PICKN PAY vs. BE Semiconductor Industries |
| REGION GROUP vs. PICKN PAY STORES | REGION GROUP vs. RETAIL FOOD GROUP | REGION GROUP vs. Chunghwa Telecom Co | REGION GROUP vs. Verizon Communications |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |