Correlation Between Balkan Mining and Pengana Private

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

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

Diversification Opportunities for Balkan Mining and Pengana Private

-0.35

Correlation Coefficient

Balkan Mining  Pengana Private

Very good diversification

The 3 months correlation between Balkan and Pengana is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Balkan Mining and and Pengana Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengana Private Equity and Balkan Mining 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 Balkan Mining and are associated (or correlated) with Pengana Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengana Private Equity has no effect on the direction of Balkan Mining i.e., Balkan Mining and Pengana Private go up and down completely randomly.

Pair Corralation between Balkan Mining and Pengana Private

Assuming the 90 days trading horizon Balkan Mining and is expected to under-perform the Pengana Private. In addition to that, Balkan Mining is 1.56 times more volatile than Pengana Private Equity. It trades about -0.01 of its total potential returns per unit of risk. Pengana Private Equity is currently generating about 0.07 per unit of volatility. If you would invest  125.00  in Pengana Private Equity on October 27, 2024 and sell it today you would earn a total of  13.00  from holding Pengana Private Equity or generate 10.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Balkan Mining and  vs.  Pengana Private Equity

Balkan Mining

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pengana Private Equity

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Pengana Private Equity are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Pengana Private may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Balkan Mining and Pengana Private

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

The idea behind Balkan Mining and and Pengana Private Equity 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.