Correlation Between Pizza Pizza and PyroGenesis Canada

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

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

Diversification Opportunities for Pizza Pizza and PyroGenesis Canada

-0.48

Correlation Coefficient

Pizza Pizza  PyroGenesis Canada

Very good diversification

The 3 months correlation between Pizza and PyroGenesis is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Pizza Pizza Royalty and PyroGenesis Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PyroGenesis Canada and Pizza Pizza 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 Pizza Pizza Royalty are associated (or correlated) with PyroGenesis Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PyroGenesis Canada has no effect on the direction of Pizza Pizza i.e., Pizza Pizza and PyroGenesis Canada go up and down completely randomly.

Pair Corralation between Pizza Pizza and PyroGenesis Canada

Assuming the 90 days trading horizon Pizza Pizza Royalty is expected to generate 0.26 times more return on investment than PyroGenesis Canada. However, Pizza Pizza Royalty is 3.9 times less risky than PyroGenesis Canada. It trades about 0.24 of its potential returns per unit of risk. PyroGenesis Canada is currently generating about -0.03 per unit of risk. If you would invest  1,415  in Pizza Pizza Royalty on May 3, 2025 and sell it today you would earn a total of  178.00  from holding Pizza Pizza Royalty or generate 12.58% return on investment over 90 days.

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

Pizza Pizza Royalty  vs.  PyroGenesis Canada

Pizza Pizza Royalty

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pizza Pizza Royalty are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Pizza Pizza may actually be approaching a critical reversion point that can send shares even higher in September 2025.

PyroGenesis Canada

Risk-Adjusted Performance

Very Weak

Over the last 90 days PyroGenesis Canada has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Pizza Pizza and PyroGenesis Canada

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

The idea behind Pizza Pizza Royalty and PyroGenesis Canada 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.