Correlation Between Ocean Glass and PRG Public
Can any of the company-specific risk be diversified away by investing in both Ocean Glass 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 Ocean Glass and PRG Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocean Glass Public and PRG Public, you can compare the effects of market volatilities on Ocean Glass 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 Ocean Glass with a short position of PRG Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Glass and PRG Public.
Diversification Opportunities for Ocean Glass and PRG Public
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ocean and PRG is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Glass Public and PRG Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PRG Public and Ocean Glass 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 Ocean Glass 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 Ocean Glass i.e., Ocean Glass and PRG Public go up and down completely randomly.
Pair Corralation between Ocean Glass and PRG Public
Assuming the 90 days trading horizon Ocean Glass is expected to generate 2.02 times less return on investment than PRG Public. But when comparing it to its historical volatility, Ocean Glass Public is 1.41 times less risky than PRG Public. It trades about 0.04 of its potential returns per unit of risk. PRG Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,101 in PRG Public on September 3, 2024 and sell it today you would lose (206.00) from holding PRG Public or give up 18.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Ocean Glass Public vs. PRG Public
Performance |
| Timeline |
| Ocean Glass Public |
| PRG Public |
Ocean Glass and PRG Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocean Glass and PRG Public
The main advantage of trading using opposite Ocean Glass and PRG Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Glass 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.| Ocean Glass vs. Peoples Garment Public | Ocean Glass vs. LPN Development Public | Ocean Glass vs. Nawarat Patanakarn Public | Ocean Glass vs. President Bakery Public |
| PRG Public vs. Surapon Foods Public | PRG Public vs. Peoples Garment Public | PRG Public vs. President Bakery Public | PRG Public vs. Sri Trang Agro Industry |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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