Correlation Between MegaLong Canadian and PS International
Can any of the company-specific risk be diversified away by investing in both MegaLong Canadian and PS International 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 MegaLong Canadian and PS International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MegaLong Canadian Banks and PS International Group, you can compare the effects of market volatilities on MegaLong Canadian and PS International 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 MegaLong Canadian with a short position of PS International. Check out your portfolio center. Please also check ongoing floating volatility patterns of MegaLong Canadian and PS International.
Diversification Opportunities for MegaLong Canadian and PS International
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MegaLong and PSIG is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding MegaLong Canadian Banks and PS International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PS International and MegaLong Canadian 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 MegaLong Canadian Banks are associated (or correlated) with PS International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PS International has no effect on the direction of MegaLong Canadian i.e., MegaLong Canadian and PS International go up and down completely randomly.
Pair Corralation between MegaLong Canadian and PS International
Assuming the 90 days trading horizon MegaLong Canadian Banks is expected to generate 0.31 times more return on investment than PS International. However, MegaLong Canadian Banks is 3.22 times less risky than PS International. It trades about 0.33 of its potential returns per unit of risk. PS International Group is currently generating about 0.09 per unit of risk. If you would invest 2,432 in MegaLong Canadian Banks on August 19, 2025 and sell it today you would earn a total of 1,208 from holding MegaLong Canadian Banks or generate 49.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
MegaLong Canadian Banks vs. PS International Group
Performance |
| Timeline |
| MegaLong Canadian Banks |
| PS International |
MegaLong Canadian and PS International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MegaLong Canadian and PS International
The main advantage of trading using opposite MegaLong Canadian and PS International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MegaLong Canadian position performs unexpectedly, PS International 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 PS International will offset losses from the drop in PS International's long position.| MegaLong Canadian vs. MegaLong Semiconductors Daily | MegaLong Canadian vs. MegaLong 20 Year | MegaLong Canadian vs. MegaLong Canadian Gold | MegaLong Canadian vs. MegaLong SP 500 |
| PS International vs. New Century Logistics | PS International vs. Lakeside Holding Limited | PS International vs. Addentax Group Corp | PS International vs. Polar Power |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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