Correlation Between Simulations Plus and Pinterest

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

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

Diversification Opportunities for Simulations Plus and Pinterest

-0.83

Correlation Coefficient

Simulations Plus  Pinterest

Pay attention - limited upside

The 3 months correlation between Simulations and Pinterest is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Simulations Plus and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest and Simulations Plus 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 Simulations Plus are associated (or correlated) with Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of Simulations Plus i.e., Simulations Plus and Pinterest go up and down completely randomly.

Pair Corralation between Simulations Plus and Pinterest

Considering the 90-day investment horizon Simulations Plus is expected to under-perform the Pinterest. In addition to that, Simulations Plus is 2.32 times more volatile than Pinterest. It trades about -0.25 of its total potential returns per unit of risk. Pinterest is currently generating about 0.3 per unit of volatility. If you would invest  2,421  in Pinterest on April 20, 2025 and sell it today you would earn a total of  1,290  from holding Pinterest or generate 53.28% return on investment over 90 days.

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

Simulations Plus  vs.  Pinterest

Simulations Plus

Risk-Adjusted Performance

Very Weak

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

Pinterest

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pinterest are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Pinterest unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Simulations Plus and Pinterest

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

The idea behind Simulations Plus and Pinterest 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.

Check out your portfolio center.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.