Correlation Between PICC Property and Sun Art

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

Diversification Opportunities for PICC Property and Sun Art

-0.43

Correlation Coefficient

PICC Property  Sun Art

Very good diversification

The 3 months correlation between PICC and Sun is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding PICC Property and and Sun Art Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Art Retail 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 Sun Art. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Art Retail has no effect on the direction of PICC Property i.e., PICC Property and Sun Art go up and down completely randomly.

Pair Corralation between PICC Property and Sun Art

Assuming the 90 days horizon PICC Property and is expected to generate 0.46 times more return on investment than Sun Art. However, PICC Property and is 2.17 times less risky than Sun Art. It trades about 0.16 of its potential returns per unit of risk. Sun Art Retail is currently generating about -0.08 per unit of risk. If you would invest  4,815  in PICC Property and on July 10, 2025 and sell it today you would earn a total of  1,104  from holding PICC Property and or generate 22.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

PICC Property and  vs.  Sun Art Retail

PICC Property

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PICC Property and are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, PICC Property showed solid returns over the last few months and may actually be approaching a breakup point.

Sun Art Retail

Risk-Adjusted Performance

Weakest

Over the last 90 days Sun Art Retail has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with PICC Property and Sun Art

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

The idea behind PICC Property and and Sun Art Retail 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.