Correlation Between PropertyGuru and Locafy

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

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

Diversification Opportunities for PropertyGuru and Locafy

0.0

Correlation Coefficient

PropertyGuru  Locafy

Pay attention - limited upside

The 3 months correlation between PropertyGuru and Locafy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PropertyGuru Group and Locafy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Locafy and PropertyGuru 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 PropertyGuru Group are associated (or correlated) with Locafy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Locafy has no effect on the direction of PropertyGuru i.e., PropertyGuru and Locafy go up and down completely randomly.

Pair Corralation between PropertyGuru and Locafy

If you would invest (100.00) in PropertyGuru Group on December 4, 2024 and sell it today you would earn a total of  100.00  from holding PropertyGuru Group or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

PropertyGuru Group  vs.  Locafy

PropertyGuru Group

Risk-Adjusted Performance

Very Weak

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

Locafy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Locafy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Locafy is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with PropertyGuru and Locafy

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

The idea behind PropertyGuru Group and Locafy 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.