Correlation Between Puregold Price and AllDay Marts

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

By analyzing existing cross correlation between Puregold Price Club and AllDay Marts, you can compare the effects of market volatilities on Puregold Price and AllDay Marts 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 Puregold Price with a short position of AllDay Marts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puregold Price and AllDay Marts.

Diversification Opportunities for Puregold Price and AllDay Marts

-0.67

Correlation Coefficient

Puregold Price  AllDay Marts

Excellent diversification

The 3 months correlation between Puregold and AllDay is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Puregold Price Club and AllDay Marts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AllDay Marts and Puregold Price 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 Puregold Price Club are associated (or correlated) with AllDay Marts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AllDay Marts has no effect on the direction of Puregold Price i.e., Puregold Price and AllDay Marts go up and down completely randomly.

Pair Corralation between Puregold Price and AllDay Marts

Assuming the 90 days trading horizon Puregold Price Club is expected to generate 1.44 times more return on investment than AllDay Marts. However, Puregold Price is 1.44 times more volatile than AllDay Marts. It trades about 0.16 of its potential returns per unit of risk. AllDay Marts is currently generating about -0.19 per unit of risk. If you would invest  3,150  in Puregold Price Club on May 6, 2025 and sell it today you would earn a total of  750.00  from holding Puregold Price Club or generate 23.81% return on investment over 90 days.

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

Puregold Price Club  vs.  AllDay Marts

Puregold Price Club

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Puregold Price Club are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Puregold Price reported solid returns over the last few months and may actually be approaching a breakup point.

AllDay Marts

Risk-Adjusted Performance

Very Weak

Over the last 90 days AllDay Marts has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Puregold Price and AllDay Marts

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

The idea behind Puregold Price Club and AllDay Marts 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.