Correlation Between Picc Prop and Perficient

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

Diversification Opportunities for Picc Prop and Perficient

-0.32
  Correlation Coefficient

Very good diversification

The 3 months correlation between PPCCF and Perficient is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Picc Prop Casualty and Perficient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perficient and Picc Prop 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 Prop Casualty are associated (or correlated) with Perficient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perficient has no effect on the direction of Picc Prop i.e., Picc Prop and Perficient go up and down completely randomly.

Pair Corralation between Picc Prop and Perficient

Assuming the 90 days horizon Picc Prop is expected to generate 2.96 times less return on investment than Perficient. But when comparing it to its historical volatility, Picc Prop Casualty is 1.32 times less risky than Perficient. It trades about 0.04 of its potential returns per unit of risk. Perficient is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  3,336  in Perficient on April 4, 2022 and sell it today you would earn a total of  5,689  from holding Perficient or generate 170.53% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.0%
ValuesDaily Returns

Picc Prop Casualty  vs.  Perficient

 Performance (%) 
      Timeline 
Picc Prop Casualty 
PPCCF Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Picc Prop Casualty are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sluggish fundamental indicators, Picc Prop may actually be approaching a critical reversion point that can send shares even higher in August 2022.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0599
Payout Ratio
0.38
Last Split Factor
3:2
Forward Annual Dividend Rate
0.06
Dividend Date
2017-08-22
Ex Dividend Date
2022-06-23
Last Split Date
2018-06-27

PPCCF Price Channel

Perficient 
Perficient Performance
0 of 100
Over the last 90 days Perficient has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of sluggish performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in August 2022. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Perficient Price Channel

Picc Prop and Perficient Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Picc Prop and Perficient

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

Picc Prop Casualty

Pair trading matchups for Picc Prop

The idea behind Picc Prop Casualty and Perficient 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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