Correlation Between Pengana Private and Peel Mining
Can any of the company-specific risk be diversified away by investing in both Pengana Private and Peel Mining 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 Peel Mining 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 Peel Mining, you can compare the effects of market volatilities on Pengana Private and Peel Mining 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 Peel Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengana Private and Peel Mining.
Diversification Opportunities for Pengana Private and Peel Mining
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pengana and Peel is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Pengana Private Equity and Peel Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peel Mining 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 Peel Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peel Mining has no effect on the direction of Pengana Private i.e., Pengana Private and Peel Mining go up and down completely randomly.
Pair Corralation between Pengana Private and Peel Mining
Assuming the 90 days trading horizon Pengana Private Equity is expected to generate 0.78 times more return on investment than Peel Mining. However, Pengana Private Equity is 1.28 times less risky than Peel Mining. It trades about 0.03 of its potential returns per unit of risk. Peel Mining is currently generating about -0.03 per unit of risk. If you would invest 124.00 in Pengana Private Equity on October 12, 2024 and sell it today you would earn a total of 3.00 from holding Pengana Private Equity or generate 2.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Pengana Private Equity vs. Peel Mining
Performance |
Timeline |
Pengana Private Equity |
Peel Mining |
Pengana Private and Peel Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pengana Private and Peel Mining
The main advantage of trading using opposite Pengana Private and Peel Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengana Private position performs unexpectedly, Peel Mining 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 Peel Mining will offset losses from the drop in Peel Mining's long position.Pengana Private vs. Peel Mining | Pengana Private vs. Balkan Mining and | Pengana Private vs. Retail Food Group | Pengana Private vs. Step One Clothing |
Peel Mining vs. Ainsworth Game Technology | Peel Mining vs. Genetic Technologies | Peel Mining vs. Ramsay Health Care | Peel Mining vs. Macquarie Technology Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |