Correlation Between PME and Cadre Holdings
Can any of the company-specific risk be diversified away by investing in both PME and Cadre Holdings 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 PME and Cadre Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PME Inc and Cadre Holdings, you can compare the effects of market volatilities on PME and Cadre Holdings 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 PME with a short position of Cadre Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PME and Cadre Holdings.
Diversification Opportunities for PME and Cadre Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PME and Cadre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PME Inc and Cadre Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadre Holdings and PME 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 PME Inc are associated (or correlated) with Cadre Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadre Holdings has no effect on the direction of PME i.e., PME and Cadre Holdings go up and down completely randomly.
Pair Corralation between PME and Cadre Holdings
If you would invest 0.01 in PME Inc on August 31, 2024 and sell it today you would earn a total of 0.00 from holding PME Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PME Inc vs. Cadre Holdings
Performance |
| Timeline |
| PME Inc |
| Cadre Holdings |
PME and Cadre Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PME and Cadre Holdings
The main advantage of trading using opposite PME and Cadre Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PME position performs unexpectedly, Cadre Holdings 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 Cadre Holdings will offset losses from the drop in Cadre Holdings' long position.| PME vs. Electro Optic Systems | PME vs. Astronics Corp Cl | PME vs. Rolls Royce Holdings | PME vs. Eve Holding |
| Cadre Holdings vs. European Wax Center | Cadre Holdings vs. Enfusion | Cadre Holdings vs. CiT Inc | Cadre Holdings vs. Core Main |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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