Correlation Between One Gas and Premier Exhibitions
Can any of the company-specific risk be diversified away by investing in both One Gas and Premier Exhibitions 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 One Gas and Premier Exhibitions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Gas and Premier Exhibitions, you can compare the effects of market volatilities on One Gas and Premier Exhibitions 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 One Gas with a short position of Premier Exhibitions. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Gas and Premier Exhibitions.
Diversification Opportunities for One Gas and Premier Exhibitions
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between One and Premier is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding One Gas and Premier Exhibitions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Exhibitions and One Gas 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 One Gas are associated (or correlated) with Premier Exhibitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Exhibitions has no effect on the direction of One Gas i.e., One Gas and Premier Exhibitions go up and down completely randomly.
Pair Corralation between One Gas and Premier Exhibitions
Considering the 90-day investment horizon One Gas is expected to generate 53.2 times less return on investment than Premier Exhibitions. But when comparing it to its historical volatility, One Gas is 12.93 times less risky than Premier Exhibitions. It trades about 0.02 of its potential returns per unit of risk. Premier Exhibitions is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Premier Exhibitions on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Premier Exhibitions or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 7.88% |
| Values | Daily Returns |
One Gas vs. Premier Exhibitions
Performance |
| Timeline |
| One Gas |
| Premier Exhibitions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
One Gas and Premier Exhibitions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Gas and Premier Exhibitions
The main advantage of trading using opposite One Gas and Premier Exhibitions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Gas position performs unexpectedly, Premier Exhibitions 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 Premier Exhibitions will offset losses from the drop in Premier Exhibitions' long position.| One Gas vs. Northwest Natural Gas | One Gas vs. Chesapeake Utilities | One Gas vs. NewJersey Resources | One Gas vs. RGC Resources |
| Premier Exhibitions vs. GameStop Corp | Premier Exhibitions vs. Suburban Propane Partners | Premier Exhibitions vs. One Gas | Premier Exhibitions vs. Doubledown Interactive Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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