Correlation Between Pengana Private and Collins Foods

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

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

Diversification Opportunities for Pengana Private and Collins Foods

-0.29

Correlation Coefficient

Pengana Private  Collins Foods

Very good diversification

The 3 months correlation between Pengana and Collins is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Pengana Private Equity and Collins Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collins Foods and Pengana Private 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 Pengana Private Equity are associated (or correlated) with Collins Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collins Foods has no effect on the direction of Pengana Private i.e., Pengana Private and Collins Foods go up and down completely randomly.

Pair Corralation between Pengana Private and Collins Foods

Assuming the 90 days trading horizon Pengana Private Equity is expected to under-perform the Collins Foods. In addition to that, Pengana Private is 1.04 times more volatile than Collins Foods. It trades about -0.01 of its total potential returns per unit of risk. Collins Foods is currently generating about 0.01 per unit of volatility. If you would invest  751.00  in Collins Foods on October 10, 2024 and sell it today you would lose (27.00) from holding Collins Foods or give up 3.6% of portfolio value over 90 days.

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

Pengana Private Equity  vs.  Collins Foods

Pengana Private Equity

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pengana Private Equity are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Collins Foods

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Collins Foods 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 comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Pengana Private and Collins Foods

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

The idea behind Pengana Private Equity and Collins Foods 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.