Correlation Between PICKN PAY and INTER CARS

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

Diversification Opportunities for PICKN PAY and INTER CARS

-0.13

Correlation Coefficient

PICKN PAY  INTER CARS

Good diversification

The 3 months correlation between PICKN and INTER is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and INTER CARS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTER CARS SA 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 INTER CARS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTER CARS SA has no effect on the direction of PICKN PAY i.e., PICKN PAY and INTER CARS go up and down completely randomly.

Pair Corralation between PICKN PAY and INTER CARS

Assuming the 90 days trading horizon PICKN PAY STORES is expected to generate 0.96 times more return on investment than INTER CARS. However, PICKN PAY STORES is 1.04 times less risky than INTER CARS. It trades about 0.14 of its potential returns per unit of risk. INTER CARS SA is currently generating about -0.05 per unit of risk. If you would invest  123.00  in PICKN PAY STORES on July 22, 2025 and sell it today you would earn a total of  26.00  from holding PICKN PAY STORES or generate 21.14% 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.  INTER CARS SA

PICKN PAY STORES

Risk-Adjusted Performance

Good

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

INTER CARS SA

Risk-Adjusted Performance

Weakest

Over the last 90 days INTER CARS SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with PICKN PAY and INTER CARS

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

The idea behind PICKN PAY STORES and INTER CARS SA 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.