Correlation Between PICKN PAY and ViacomCBS

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

By analyzing existing cross correlation between PICKN PAY STORES and ViacomCBS, you can compare the effects of market volatilities on PICKN PAY and ViacomCBS 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 PICKN PAY with a short position of ViacomCBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and ViacomCBS.

Diversification Opportunities for PICKN PAY and ViacomCBS

-0.15

Correlation Coefficient

PICKN PAY  ViacomCBS

Good diversification

The 3 months correlation between PICKN and ViacomCBS is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and ViacomCBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ViacomCBS and PICKN PAY 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 PICKN PAY STORES are associated (or correlated) with ViacomCBS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ViacomCBS has no effect on the direction of PICKN PAY i.e., PICKN PAY and ViacomCBS go up and down completely randomly.

Pair Corralation between PICKN PAY and ViacomCBS

Assuming the 90 days trading horizon PICKN PAY is expected to generate 16.18 times less return on investment than ViacomCBS. In addition to that, PICKN PAY is 1.46 times more volatile than ViacomCBS. It trades about 0.01 of its total potential returns per unit of risk. ViacomCBS is currently generating about 0.14 per unit of volatility. If you would invest  981.00  in ViacomCBS on April 24, 2025 and sell it today you would earn a total of  138.00  from holding ViacomCBS or generate 14.07% return on investment over 90 days.

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

PICKN PAY STORES  vs.  ViacomCBS

PICKN PAY STORES

Risk-Adjusted Performance

Very Weak

Over the last 90 days PICKN PAY STORES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PICKN PAY is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

ViacomCBS

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ViacomCBS are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, ViacomCBS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PICKN PAY and ViacomCBS

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

The idea behind PICKN PAY STORES and ViacomCBS 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.