Correlation Between Experian Plc and Experian PLC

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

By analyzing existing cross correlation between Experian plc PK and Experian PLC, you can compare the effects of market volatilities on Experian Plc and Experian PLC 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 Experian Plc with a short position of Experian PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Experian Plc and Experian PLC.

Diversification Opportunities for Experian Plc and Experian PLC

0.93

Correlation Coefficient

Experian Plc  Experian PLC

Almost no diversification

The 3 months correlation between Experian and Experian is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Experian plc PK and Experian PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Experian PLC and Experian Plc 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 Experian plc PK are associated (or correlated) with Experian PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Experian PLC has no effect on the direction of Experian Plc i.e., Experian Plc and Experian PLC go up and down completely randomly.

Pair Corralation between Experian Plc and Experian PLC

Assuming the 90 days horizon Experian plc PK is expected to under-perform the Experian PLC. But the otc stock apears to be less risky and, when comparing its historical volatility, Experian plc PK is 1.14 times less risky than Experian PLC. The otc stock trades about -0.25 of its potential returns per unit of risk. The Experian PLC is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest  5,111  in Experian PLC on October 13, 2024 and sell it today you would lose (836.00) from holding Experian PLC or give up 16.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Experian plc PK  vs.  Experian PLC

Experian plc PK

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Experian plc PK has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Experian PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Experian PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Experian Plc and Experian PLC

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

The idea behind Experian plc PK and Experian PLC 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..