Correlation Between PICC Property and Broadwind

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

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

Diversification Opportunities for PICC Property and Broadwind

0.79

Correlation Coefficient

PICC Property  Broadwind

Poor diversification

The 3 months correlation between PICC and Broadwind is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding PICC Property and and Broadwind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadwind and PICC Property 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 PICC Property and are associated (or correlated) with Broadwind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadwind has no effect on the direction of PICC Property i.e., PICC Property and Broadwind go up and down completely randomly.

Pair Corralation between PICC Property and Broadwind

Assuming the 90 days horizon PICC Property is expected to generate 1.09 times less return on investment than Broadwind. But when comparing it to its historical volatility, PICC Property and is 2.33 times less risky than Broadwind. It trades about 0.1 of its potential returns per unit of risk. Broadwind is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  166.00  in Broadwind on May 16, 2025 and sell it today you would earn a total of  12.00  from holding Broadwind or generate 7.23% return on investment over 90 days.

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

PICC Property and  vs.  Broadwind

PICC Property

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in PICC Property and are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PICC Property reported solid returns over the last few months and may actually be approaching a breakup point.

Broadwind

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Broadwind are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Broadwind reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PICC Property and Broadwind

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

The idea behind PICC Property and and Broadwind 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.