Correlation Between PICC Property and George Weston
Can any of the company-specific risk be diversified away by investing in both PICC Property and George Weston 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 PICC Property and George Weston into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PICC Property and and George Weston Limited, you can compare the effects of market volatilities on PICC Property and George Weston 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 PICC Property with a short position of George Weston. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICC Property and George Weston.
Diversification Opportunities for PICC Property and George Weston
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PICC and George is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding PICC Property and and George Weston Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on George Weston Limited and PICC Property 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 PICC Property and are associated (or correlated) with George Weston. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of George Weston Limited has no effect on the direction of PICC Property i.e., PICC Property and George Weston go up and down completely randomly.
Pair Corralation between PICC Property and George Weston
Assuming the 90 days horizon PICC Property and is expected to generate 3.97 times more return on investment than George Weston. However, PICC Property is 3.97 times more volatile than George Weston Limited. It trades about 0.02 of its potential returns per unit of risk. George Weston Limited is currently generating about -0.03 per unit of risk. If you would invest 3,852 in PICC Property and on September 2, 2024 and sell it today you would earn a total of 10.00 from holding PICC Property and or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PICC Property and vs. George Weston Limited
Performance |
| Timeline |
| PICC Property |
| George Weston Limited |
PICC Property and George Weston Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICC Property and George Weston
The main advantage of trading using opposite PICC Property and George Weston positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICC Property position performs unexpectedly, George Weston 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 George Weston will offset losses from the drop in George Weston's long position.The idea behind PICC Property and and George Weston Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| George Weston vs. Village Super Market | George Weston vs. Ingles Markets Incorporated | George Weston vs. Natural Grocers by | George Weston vs. Grocery Outlet Holding |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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