Correlation Between Hello and PropertyGuru
Can any of the company-specific risk be diversified away by investing in both Hello 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 Hello and PropertyGuru into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hello Group and PropertyGuru Group, you can compare the effects of market volatilities on Hello 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 Hello with a short position of PropertyGuru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hello and PropertyGuru.
Diversification Opportunities for Hello and PropertyGuru
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hello and PropertyGuru is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Hello Group and PropertyGuru Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PropertyGuru Group and Hello 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 Hello Group 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 Hello i.e., Hello and PropertyGuru go up and down completely randomly.
Pair Corralation between Hello and PropertyGuru
Given the investment horizon of 90 days Hello Group is expected to under-perform the PropertyGuru. In addition to that, Hello is 16.4 times more volatile than PropertyGuru Group. It trades about -0.05 of its total potential returns per unit of risk. PropertyGuru Group is currently generating about 0.0 per unit of volatility. If you would invest 663.00 in PropertyGuru Group on August 24, 2024 and sell it today you would earn a total of 0.00 from holding PropertyGuru Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hello Group vs. PropertyGuru Group
Performance |
| Timeline |
| Hello Group |
| PropertyGuru Group |
Hello and PropertyGuru Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hello and PropertyGuru
The main advantage of trading using opposite Hello and PropertyGuru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hello 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.The idea behind Hello Group and PropertyGuru Group 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.| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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