Correlation Between Asset Entities and PropertyGuru

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

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

Diversification Opportunities for Asset Entities and PropertyGuru

0.0

Correlation Coefficient

Asset Entities  PropertyGuru

Pay attention - limited upside

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

Pair Corralation between Asset Entities and PropertyGuru

If you would invest  46.00  in Asset Entities Class on December 30, 2024 and sell it today you would earn a total of  6.00  from holding Asset Entities Class or generate 13.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Asset Entities Class  vs.  PropertyGuru Group

Asset Entities Class

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Asset Entities Class are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Asset Entities unveiled solid returns over the last few months and may actually be approaching a breakup point.

PropertyGuru Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days PropertyGuru Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PropertyGuru is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Asset Entities and PropertyGuru

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

The idea behind Asset Entities Class and PropertyGuru Group 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.