Correlation Between PICKN PAY and XTANT MEDICAL
Can any of the company-specific risk be diversified away by investing in both PICKN PAY and XTANT MEDICAL 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 XTANT MEDICAL 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 XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on PICKN PAY and XTANT MEDICAL 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 XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and XTANT MEDICAL.
Diversification Opportunities for PICKN PAY and XTANT MEDICAL
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between PICKN and XTANT is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and XTANT MEDICAL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTANT MEDICAL HLDGS 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 XTANT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTANT MEDICAL HLDGS has no effect on the direction of PICKN PAY i.e., PICKN PAY and XTANT MEDICAL go up and down completely randomly.
Pair Corralation between PICKN PAY and XTANT MEDICAL
Assuming the 90 days trading horizon PICKN PAY STORES is expected to generate 0.64 times more return on investment than XTANT MEDICAL. However, PICKN PAY STORES is 1.57 times less risky than XTANT MEDICAL. It trades about 0.08 of its potential returns per unit of risk. XTANT MEDICAL HLDGS is currently generating about -0.02 per unit of risk. If you would invest 97.00 in PICKN PAY STORES on October 27, 2024 and sell it today you would earn a total of 50.00 from holding PICKN PAY STORES or generate 51.55% 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. XTANT MEDICAL HLDGS
Performance |
| Timeline |
| PICKN PAY STORES |
| XTANT MEDICAL HLDGS |
PICKN PAY and XTANT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICKN PAY and XTANT MEDICAL
The main advantage of trading using opposite PICKN PAY and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY position performs unexpectedly, XTANT MEDICAL 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 XTANT MEDICAL will offset losses from the drop in XTANT MEDICAL's long position.| PICKN PAY vs. Meli Hotels International | PICKN PAY vs. BW OFFSHORE LTD | PICKN PAY vs. WT OFFSHORE | PICKN PAY vs. Sunstone Hotel Investors |
| XTANT MEDICAL vs. TEN SQUARE GAMES | XTANT MEDICAL vs. G III Apparel Group | XTANT MEDICAL vs. Corsair Gaming | XTANT MEDICAL vs. GAMESTOP |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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