Correlation Between Parkson Retail and Caseys General

Can any of the company-specific risk be diversified away by investing in both Parkson Retail and Caseys General 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 Parkson Retail and Caseys General into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Parkson Retail Group and Caseys General Stores, you can compare the effects of market volatilities on Parkson Retail and Caseys General 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 Parkson Retail with a short position of Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parkson Retail and Caseys General.

Diversification Opportunities for Parkson Retail and Caseys General

0.06

Correlation Coefficient

Parkson Retail  Caseys General

Significant diversification

The 3 months correlation between Parkson and Caseys is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Parkson Retail Group and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores and Parkson Retail 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 Parkson Retail Group are associated (or correlated) with Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of Parkson Retail i.e., Parkson Retail and Caseys General go up and down completely randomly.

Pair Corralation between Parkson Retail and Caseys General

Assuming the 90 days trading horizon Parkson Retail Group is expected to under-perform the Caseys General. In addition to that, Parkson Retail is 1.98 times more volatile than Caseys General Stores. It trades about -0.01 of its total potential returns per unit of risk. Caseys General Stores is currently generating about 0.1 per unit of volatility. If you would invest  38,958  in Caseys General Stores on April 25, 2025 and sell it today you would earn a total of  5,442  from holding Caseys General Stores or generate 13.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Parkson Retail Group  vs.  Caseys General Stores

Parkson Retail Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Parkson Retail Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Parkson Retail is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Caseys General Stores

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Caseys General Stores are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Caseys General unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Parkson Retail and Caseys General

The main advantage of trading using opposite Parkson Retail and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parkson Retail position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.

The idea behind Parkson Retail Group and Caseys General Stores 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.

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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.