Correlation Between Pandox AB and Five Below

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Can any of the company-specific risk be diversified away by investing in both Pandox AB and Five Below 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 Pandox AB and Five Below into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pandox AB and Five Below, you can compare the effects of market volatilities on Pandox AB and Five Below 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 Pandox AB with a short position of Five Below. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pandox AB and Five Below.

Diversification Opportunities for Pandox AB and Five Below

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Pandox and Five Below is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pandox AB and Five Below in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Five Below and Pandox AB 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 Pandox AB are associated (or correlated) with Five Below. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Five Below has no effect on the direction of Pandox AB i.e., Pandox AB and Five Below go up and down completely randomly.

Pair Corralation between Pandox AB and Five Below

If you would invest  14,810  in Five Below on September 4, 2022 and sell it today you would earn a total of  3,606  from holding Five Below or generate 24.35% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy86.36%
ValuesDaily Returns

Pandox AB  vs.  Five Below

 Performance (%) 
       Timeline  
Pandox AB 
Pandox Performance
0 of 100
Over the last 90 days Pandox AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Pandox AB is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pandox Price Channel

Five Below 
Five Below Performance
12 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Five Below are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, Five Below exhibited solid returns over the last few months and may actually be approaching a breakup point.

Five Below Price Channel

Pandox AB and Five Below Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Pandox AB and Five Below

The main advantage of trading using opposite Pandox AB and Five Below positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pandox AB position performs unexpectedly, Five Below 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 Five Below will offset losses from the drop in Five Below's long position.
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The idea behind Pandox AB and Five Below 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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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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