Correlation Between Event Hospitality and Pengana Private

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

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

Diversification Opportunities for Event Hospitality and Pengana Private

-0.69

Correlation Coefficient

Event Hospitality  Pengana Private

Excellent diversification

The 3 months correlation between Event and Pengana is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Event Hospitality 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 Event Hospitality 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 Event Hospitality 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 Event Hospitality i.e., Event Hospitality and Pengana Private go up and down completely randomly.

Pair Corralation between Event Hospitality and Pengana Private

Assuming the 90 days trading horizon Event Hospitality and is expected to generate 0.67 times more return on investment than Pengana Private. However, Event Hospitality and is 1.49 times less risky than Pengana Private. It trades about 0.15 of its potential returns per unit of risk. Pengana Private Equity is currently generating about -0.02 per unit of risk. If you would invest  1,130  in Event Hospitality and on December 29, 2024 and sell it today you would earn a total of  227.00  from holding Event Hospitality and or generate 20.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Event Hospitality and  vs.  Pengana Private Equity

Event Hospitality

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Event Hospitality and are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Event Hospitality unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pengana Private Equity

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Event Hospitality and Pengana Private

The main advantage of trading using opposite Event Hospitality and Pengana Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Event Hospitality 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 Event Hospitality 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.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.