Correlation Between PICKN PAY and Stanley Electric
Can any of the company-specific risk be diversified away by investing in both PICKN PAY and Stanley Electric 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 Stanley Electric 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 Stanley Electric Co, you can compare the effects of market volatilities on PICKN PAY and Stanley Electric 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 Stanley Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and Stanley Electric.
Diversification Opportunities for PICKN PAY and Stanley Electric
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PICKN and Stanley is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and Stanley Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stanley Electric 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 Stanley Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stanley Electric has no effect on the direction of PICKN PAY i.e., PICKN PAY and Stanley Electric go up and down completely randomly.
Pair Corralation between PICKN PAY and Stanley Electric
Assuming the 90 days trading horizon PICKN PAY is expected to generate 5.77 times less return on investment than Stanley Electric. In addition to that, PICKN PAY is 1.11 times more volatile than Stanley Electric Co. It trades about 0.01 of its total potential returns per unit of risk. Stanley Electric Co is currently generating about 0.05 per unit of volatility. If you would invest 1,530 in Stanley Electric Co on September 21, 2024 and sell it today you would earn a total of 20.00 from holding Stanley Electric Co or generate 1.31% 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. Stanley Electric Co
Performance |
| Timeline |
| PICKN PAY STORES |
| Stanley Electric |
PICKN PAY and Stanley Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICKN PAY and Stanley Electric
The main advantage of trading using opposite PICKN PAY and Stanley Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY position performs unexpectedly, Stanley Electric 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 Stanley Electric will offset losses from the drop in Stanley Electric's long position.| PICKN PAY vs. CODERE ONLINE LUX | PICKN PAY vs. BOS BETTER ONLINE | PICKN PAY vs. PACIFIC ONLINE | PICKN PAY vs. MAGNUM MINING EXP |
| Stanley Electric vs. FUYO GENERAL LEASE | Stanley Electric vs. RETAIL FOOD GROUP | Stanley Electric vs. PICKN PAY STORES | Stanley Electric vs. United Rentals |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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