Correlation Between Navigator Global and Pacific Current
Can any of the company-specific risk be diversified away by investing in both Navigator Global and Pacific Current 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 Navigator Global and Pacific Current into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Navigator Global Investments and Pacific Current Group, you can compare the effects of market volatilities on Navigator Global and Pacific Current 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 Navigator Global with a short position of Pacific Current. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navigator Global and Pacific Current.
Diversification Opportunities for Navigator Global and Pacific Current
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Navigator and Pacific is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Navigator Global Investments and Pacific Current Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Current Group and Navigator Global 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 Navigator Global Investments are associated (or correlated) with Pacific Current. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Current Group has no effect on the direction of Navigator Global i.e., Navigator Global and Pacific Current go up and down completely randomly.
Pair Corralation between Navigator Global and Pacific Current
Assuming the 90 days trading horizon Navigator Global Investments is expected to under-perform the Pacific Current. In addition to that, Navigator Global is 3.84 times more volatile than Pacific Current Group. It trades about -0.02 of its total potential returns per unit of risk. Pacific Current Group is currently generating about -0.07 per unit of volatility. If you would invest 1,095 in Pacific Current Group on September 1, 2024 and sell it today you would lose (11.00) from holding Pacific Current Group or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Navigator Global Investments vs. Pacific Current Group
Performance |
| Timeline |
| Navigator Global Inv |
| Pacific Current Group |
Navigator Global and Pacific Current Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navigator Global and Pacific Current
The main advantage of trading using opposite Navigator Global and Pacific Current positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navigator Global position performs unexpectedly, Pacific Current 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 Pacific Current will offset losses from the drop in Pacific Current's long position.| Navigator Global vs. A1 Investments Resources | Navigator Global vs. K2 Asset Management | Navigator Global vs. MFF Capital Investments | Navigator Global vs. Ainsworth Game Technology |
| Pacific Current vs. Australian Unity Office | Pacific Current vs. Seven West Media | Pacific Current vs. Neurotech International | Pacific Current vs. Autosports 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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