Correlation Between Credit Corp and Pengana Private
Can any of the company-specific risk be diversified away by investing in both Credit Corp and Pengana Private 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 Credit Corp and Pengana Private into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Corp Group and Pengana Private Equity, you can compare the effects of market volatilities on Credit Corp and Pengana Private 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 Credit Corp with a short position of Pengana Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Corp and Pengana Private.
Diversification Opportunities for Credit Corp and Pengana Private
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Credit and Pengana is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Credit Corp Group and Pengana Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengana Private Equity and Credit Corp 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 Credit Corp Group are associated (or correlated) with Pengana Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengana Private Equity has no effect on the direction of Credit Corp i.e., Credit Corp and Pengana Private go up and down completely randomly.
Pair Corralation between Credit Corp and Pengana Private
Assuming the 90 days trading horizon Credit Corp Group is expected to generate 1.22 times more return on investment than Pengana Private. However, Credit Corp is 1.22 times more volatile than Pengana Private Equity. It trades about 0.09 of its potential returns per unit of risk. Pengana Private Equity is currently generating about -0.15 per unit of risk. If you would invest 1,725 in Credit Corp Group on August 30, 2024 and sell it today you would earn a total of 52.00 from holding Credit Corp Group or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Corp Group vs. Pengana Private Equity
Performance |
| Timeline |
| Credit Corp Group |
| Pengana Private Equity |
Credit Corp and Pengana Private Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Corp and Pengana Private
The main advantage of trading using opposite Credit Corp and Pengana Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Corp position performs unexpectedly, Pengana Private 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 Pengana Private will offset losses from the drop in Pengana Private's long position.| Credit Corp vs. Hutchison Telecommunications | Credit Corp vs. IDP Education | Credit Corp vs. Strickland Metals | Credit Corp vs. Aeon Metals |
| Pengana Private vs. Westpac Banking | Pengana Private vs. ABACUS STORAGE KING | Pengana Private vs. Odyssey Energy | Pengana Private vs. Credit Corp 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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