Correlation Between PICKN PAY and CHINA SOUTHN

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

Diversification Opportunities for PICKN PAY and CHINA SOUTHN

-0.09

Correlation Coefficient

PICKN PAY  CHINA SOUTHN

Good diversification

The 3 months correlation between PICKN and CHINA is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and CHINA SOUTHN AIR H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA SOUTHN AIR 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 CHINA SOUTHN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA SOUTHN AIR has no effect on the direction of PICKN PAY i.e., PICKN PAY and CHINA SOUTHN go up and down completely randomly.

Pair Corralation between PICKN PAY and CHINA SOUTHN

Assuming the 90 days trading horizon PICKN PAY STORES is expected to under-perform the CHINA SOUTHN. But the stock apears to be less risky and, when comparing its historical volatility, PICKN PAY STORES is 1.0 times less risky than CHINA SOUTHN. The stock trades about -0.01 of its potential returns per unit of risk. The CHINA SOUTHN AIR H is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  37.00  in CHINA SOUTHN AIR H on April 23, 2025 and sell it today you would earn a total of  3.00  from holding CHINA SOUTHN AIR H or generate 8.11% 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.  CHINA SOUTHN AIR H

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.

CHINA SOUTHN AIR

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CHINA SOUTHN AIR H are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, CHINA SOUTHN may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with PICKN PAY and CHINA SOUTHN

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

The idea behind PICKN PAY STORES and CHINA SOUTHN AIR H 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.