Correlation Between Trump Media and PropertyGuru
Can any of the company-specific risk be diversified away by investing in both Trump Media and PropertyGuru 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 Trump Media and PropertyGuru into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trump Media Technology and PropertyGuru Group, you can compare the effects of market volatilities on Trump Media and PropertyGuru 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 Trump Media with a short position of PropertyGuru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trump Media and PropertyGuru.
Diversification Opportunities for Trump Media and PropertyGuru
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Trump and PropertyGuru is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Trump Media Technology and PropertyGuru Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PropertyGuru Group and Trump Media 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 Trump Media Technology are associated (or correlated) with PropertyGuru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PropertyGuru Group has no effect on the direction of Trump Media i.e., Trump Media and PropertyGuru go up and down completely randomly.
Pair Corralation between Trump Media and PropertyGuru
Considering the 90-day investment horizon Trump Media is expected to generate 6.01 times less return on investment than PropertyGuru. In addition to that, Trump Media is 4.71 times more volatile than PropertyGuru Group. It trades about 0.01 of its total potential returns per unit of risk. PropertyGuru Group is currently generating about 0.17 per unit of volatility. If you would invest 465.00 in PropertyGuru Group on September 2, 2024 and sell it today you would earn a total of 199.00 from holding PropertyGuru Group or generate 42.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trump Media Technology vs. PropertyGuru Group
Performance |
| Timeline |
| Trump Media Technology |
| PropertyGuru Group |
Trump Media and PropertyGuru Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trump Media and PropertyGuru
The main advantage of trading using opposite Trump Media and PropertyGuru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trump Media position performs unexpectedly, PropertyGuru 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 PropertyGuru will offset losses from the drop in PropertyGuru's long position.| Trump Media vs. Lipocine | Trump Media vs. Here Media | Trump Media vs. Arrow Financial | Trump Media vs. Uber Technologies |
| PropertyGuru vs. Comscore | PropertyGuru vs. Cheetah Mobile | PropertyGuru vs. EverQuote Class A | PropertyGuru vs. DouYu International Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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