Correlation Between PICKN PAY and TreeHouse Foods
Can any of the company-specific risk be diversified away by investing in both PICKN PAY and TreeHouse Foods 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 TreeHouse Foods 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 TreeHouse Foods, you can compare the effects of market volatilities on PICKN PAY and TreeHouse Foods 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 TreeHouse Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and TreeHouse Foods.
Diversification Opportunities for PICKN PAY and TreeHouse Foods
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between PICKN and TreeHouse is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and TreeHouse Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TreeHouse Foods 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 TreeHouse Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TreeHouse Foods has no effect on the direction of PICKN PAY i.e., PICKN PAY and TreeHouse Foods go up and down completely randomly.
Pair Corralation between PICKN PAY and TreeHouse Foods
Assuming the 90 days trading horizon PICKN PAY STORES is expected to generate 0.86 times more return on investment than TreeHouse Foods. However, PICKN PAY STORES is 1.16 times less risky than TreeHouse Foods. It trades about 0.06 of its potential returns per unit of risk. TreeHouse Foods is currently generating about -0.22 per unit of risk. If you would invest 147.00 in PICKN PAY STORES on November 25, 2024 and sell it today you would earn a total of 3.00 from holding PICKN PAY STORES or generate 2.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PICKN PAY STORES vs. TreeHouse Foods
Performance |
Timeline |
PICKN PAY STORES |
TreeHouse Foods |
PICKN PAY and TreeHouse Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PICKN PAY and TreeHouse Foods
The main advantage of trading using opposite PICKN PAY and TreeHouse Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY position performs unexpectedly, TreeHouse Foods 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 TreeHouse Foods will offset losses from the drop in TreeHouse Foods' long position.PICKN PAY vs. TAL Education Group | ||
PICKN PAY vs. betterU Education Corp | ||
PICKN PAY vs. G8 EDUCATION | ||
PICKN PAY vs. IDP EDUCATION LTD |
TreeHouse Foods vs. Platinum Investment Management | ||
TreeHouse Foods vs. CeoTronics AG | ||
TreeHouse Foods vs. Perdoceo Education | ||
TreeHouse Foods vs. Soken Chemical Engineering |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |