Correlation Between PICKN PAY and SERESCO 16

Can any of the company-specific risk be diversified away by investing in both PICKN PAY and SERESCO 16 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 SERESCO 16 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 SERESCO 16, you can compare the effects of market volatilities on PICKN PAY and SERESCO 16 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 SERESCO 16. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and SERESCO 16.

Diversification Opportunities for PICKN PAY and SERESCO 16

-0.55

Correlation Coefficient

PICKN PAY  SERESCO 16

Excellent diversification

The 3 months correlation between PICKN and SERESCO is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and SERESCO 16 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SERESCO 16 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 SERESCO 16. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SERESCO 16 has no effect on the direction of PICKN PAY i.e., PICKN PAY and SERESCO 16 go up and down completely randomly.

Pair Corralation between PICKN PAY and SERESCO 16

Assuming the 90 days trading horizon PICKN PAY STORES is expected to under-perform the SERESCO 16. But the stock apears to be less risky and, when comparing its historical volatility, PICKN PAY STORES is 1.46 times less risky than SERESCO 16. The stock trades about -0.01 of its potential returns per unit of risk. The SERESCO 16 is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  536.00  in SERESCO 16 on April 23, 2025 and sell it today you would earn a total of  149.00  from holding SERESCO 16 or generate 27.8% return on investment over 90 days.

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

PICKN PAY STORES  vs.  SERESCO 16

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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

SERESCO 16

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SERESCO 16 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, SERESCO 16 reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PICKN PAY and SERESCO 16

The main advantage of trading using opposite PICKN PAY and SERESCO 16 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY position performs unexpectedly, SERESCO 16 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 SERESCO 16 will offset losses from the drop in SERESCO 16's long position.

The idea behind PICKN PAY STORES and SERESCO 16 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.