Correlation Between AiMedia Technologies and PM Capital
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and PM Capital 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 AiMedia Technologies and PM Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and PM Capital Global, you can compare the effects of market volatilities on AiMedia Technologies and PM Capital 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 AiMedia Technologies with a short position of PM Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and PM Capital.
Diversification Opportunities for AiMedia Technologies and PM Capital
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AiMedia and PGF is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and PM Capital Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PM Capital Global and AiMedia Technologies 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 AiMedia Technologies are associated (or correlated) with PM Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PM Capital Global has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and PM Capital go up and down completely randomly.
Pair Corralation between AiMedia Technologies and PM Capital
Assuming the 90 days trading horizon AiMedia Technologies is expected to generate 1.22 times less return on investment than PM Capital. In addition to that, AiMedia Technologies is 4.81 times more volatile than PM Capital Global. It trades about 0.01 of its total potential returns per unit of risk. PM Capital Global is currently generating about 0.08 per unit of volatility. If you would invest 226.00 in PM Capital Global on September 5, 2024 and sell it today you would earn a total of 4.00 from holding PM Capital Global or generate 1.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AiMedia Technologies vs. PM Capital Global
Performance |
| Timeline |
| AiMedia Technologies |
| PM Capital Global |
AiMedia Technologies and PM Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and PM Capital
The main advantage of trading using opposite AiMedia Technologies and PM Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, PM Capital 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 PM Capital will offset losses from the drop in PM Capital's long position.| AiMedia Technologies vs. Pengana Private Equity | AiMedia Technologies vs. PM Capital Global | AiMedia Technologies vs. Wam Leaders | AiMedia Technologies vs. Staude Capital Global |
| PM Capital vs. AiMedia Technologies | PM Capital vs. Pinnacle Investment Management | PM Capital vs. Auctus Alternative Investments | PM Capital vs. Regal 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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