Correlation Between PS International and United Parcel
Can any of the company-specific risk be diversified away by investing in both PS International and United Parcel 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 United Parcel 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 United Parcel Service, you can compare the effects of market volatilities on PS International and United Parcel 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 United Parcel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PS International and United Parcel.
Diversification Opportunities for PS International and United Parcel
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PSIG and United is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding PS International Group and United Parcel Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Parcel Service 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 United Parcel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Parcel Service has no effect on the direction of PS International i.e., PS International and United Parcel go up and down completely randomly.
Pair Corralation between PS International and United Parcel
Given the investment horizon of 90 days PS International Group is expected to under-perform the United Parcel. In addition to that, PS International is 2.96 times more volatile than United Parcel Service. It trades about -0.15 of its total potential returns per unit of risk. United Parcel Service is currently generating about 0.02 per unit of volatility. If you would invest 13,468 in United Parcel Service on August 30, 2024 and sell it today you would earn a total of 100.00 from holding United Parcel Service or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PS International Group vs. United Parcel Service
Performance |
| Timeline |
| PS International |
| United Parcel Service |
PS International and United Parcel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PS International and United Parcel
The main advantage of trading using opposite PS International and United Parcel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PS International position performs unexpectedly, United Parcel 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 United Parcel will offset losses from the drop in United Parcel's long position.| PS International vs. Pinterest | PS International vs. PACCAR Inc | PS International vs. U Power Limited | PS International vs. Cars Inc |
| United Parcel vs. JB Hunt Transport | United Parcel vs. Expeditors International of | United Parcel vs. Hub Group | United Parcel vs. Landstar System |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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