Correlation Between PS International and Pinterest
Can any of the company-specific risk be diversified away by investing in both PS International and Pinterest 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 PS International and Pinterest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PS International Group and Pinterest, you can compare the effects of market volatilities on PS International and Pinterest 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 PS International with a short position of Pinterest. Check out your portfolio center. Please also check ongoing floating volatility patterns of PS International and Pinterest.
Diversification Opportunities for PS International and Pinterest
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PSIG and Pinterest is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PS International Group and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest and PS International 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 PS International Group are associated (or correlated) with Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of PS International i.e., PS International and Pinterest go up and down completely randomly.
Pair Corralation between PS International and Pinterest
Given the investment horizon of 90 days PS International Group is expected to under-perform the Pinterest. In addition to that, PS International is 1.13 times more volatile than Pinterest. It trades about -0.3 of its total potential returns per unit of risk. Pinterest is currently generating about -0.05 per unit of volatility. If you would invest 3,202 in Pinterest on September 2, 2024 and sell it today you would lose (170.00) from holding Pinterest or give up 5.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PS International Group vs. Pinterest
Performance |
| Timeline |
| PS International |
PS International and Pinterest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PS International and Pinterest
The main advantage of trading using opposite PS International and Pinterest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PS International position performs unexpectedly, Pinterest 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 Pinterest will offset losses from the drop in Pinterest's long position.| PS International vs. Bright Scholar Education | PS International vs. SNDL Inc | PS International vs. Vodka Brands Corp | PS International vs. PepsiCo |
| Pinterest vs. MediaAlpha | Pinterest vs. Asset Entities Class | Pinterest vs. Shutterstock | Pinterest vs. Match Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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