Correlation Between PICKN PAY and Corning Incorporated

Can any of the company-specific risk be diversified away by investing in both PICKN PAY and Corning Incorporated 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 Corning Incorporated 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 Corning Incorporated, you can compare the effects of market volatilities on PICKN PAY and Corning Incorporated 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 Corning Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and Corning Incorporated.

Diversification Opportunities for PICKN PAY and Corning Incorporated

-0.19

Correlation Coefficient

PICKN PAY  Corning Incorporated

Good diversification

The 3 months correlation between PICKN and Corning is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and Corning Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corning Incorporated 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 Corning Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corning Incorporated has no effect on the direction of PICKN PAY i.e., PICKN PAY and Corning Incorporated go up and down completely randomly.

Pair Corralation between PICKN PAY and Corning Incorporated

Assuming the 90 days trading horizon PICKN PAY is expected to generate 10.25 times less return on investment than Corning Incorporated. In addition to that, PICKN PAY is 1.75 times more volatile than Corning Incorporated. It trades about 0.02 of its total potential returns per unit of risk. Corning Incorporated is currently generating about 0.3 per unit of volatility. If you would invest  3,627  in Corning Incorporated on April 22, 2025 and sell it today you would earn a total of  1,035  from holding Corning Incorporated or generate 28.54% 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.  Corning Incorporated

PICKN PAY STORES

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PICKN PAY STORES are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, PICKN PAY is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Corning Incorporated

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Corning Incorporated are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Corning Incorporated reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PICKN PAY and Corning Incorporated

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

The idea behind PICKN PAY STORES and Corning Incorporated 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.