Correlation Between AIRA Capital and PRG Public
Can any of the company-specific risk be diversified away by investing in both AIRA Capital and PRG Public 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 AIRA Capital and PRG Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIRA Capital Public and PRG Public, you can compare the effects of market volatilities on AIRA Capital and PRG Public 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 AIRA Capital with a short position of PRG Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRA Capital and PRG Public.
Diversification Opportunities for AIRA Capital and PRG Public
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between AIRA and PRG is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding AIRA Capital Public and PRG Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PRG Public and AIRA Capital 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 AIRA Capital Public are associated (or correlated) with PRG Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PRG Public has no effect on the direction of AIRA Capital i.e., AIRA Capital and PRG Public go up and down completely randomly.
Pair Corralation between AIRA Capital and PRG Public
Assuming the 90 days trading horizon AIRA Capital Public is expected to under-perform the PRG Public. In addition to that, AIRA Capital is 5.61 times more volatile than PRG Public. It trades about -0.2 of its total potential returns per unit of risk. PRG Public is currently generating about -0.05 per unit of volatility. If you would invest 900.00 in PRG Public on August 24, 2024 and sell it today you would lose (5.00) from holding PRG Public or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
AIRA Capital Public vs. PRG Public
Performance |
| Timeline |
| AIRA Capital Public |
| PRG Public |
AIRA Capital and PRG Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIRA Capital and PRG Public
The main advantage of trading using opposite AIRA Capital and PRG Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRA Capital position performs unexpectedly, PRG Public 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 PRG Public will offset losses from the drop in PRG Public's long position.| AIRA Capital vs. Asia Aviation Public | AIRA Capital vs. ASIA Capital Group | AIRA Capital vs. Akkhie Prakarn Public | AIRA Capital vs. AIRA Factoring Public |
| PRG Public vs. CP ALL Public | PRG Public vs. Carabao Group Public | PRG Public vs. Thai Union Group | PRG Public vs. Minor International Public |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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