Correlation Between PGE Corp and Marine Products
Can any of the company-specific risk be diversified away by investing in both PGE Corp and Marine Products 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 PGE Corp and Marine Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGE Corp and Marine Products, you can compare the effects of market volatilities on PGE Corp and Marine Products 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 PGE Corp with a short position of Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGE Corp and Marine Products.
Diversification Opportunities for PGE Corp and Marine Products
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PGE and Marine is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding PGE Corp and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products and PGE Corp 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 PGE Corp are associated (or correlated) with Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of PGE Corp i.e., PGE Corp and Marine Products go up and down completely randomly.
Pair Corralation between PGE Corp and Marine Products
Considering the 90-day investment horizon PGE Corp is expected to generate 0.47 times more return on investment than Marine Products. However, PGE Corp is 2.13 times less risky than Marine Products. It trades about 0.45 of its potential returns per unit of risk. Marine Products is currently generating about 0.18 per unit of risk. If you would invest 2,004 in PGE Corp on September 2, 2024 and sell it today you would earn a total of 159.00 from holding PGE Corp or generate 7.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PGE Corp vs. Marine Products
Performance |
| Timeline |
| PGE Corp |
| Marine Products |
PGE Corp and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGE Corp and Marine Products
The main advantage of trading using opposite PGE Corp and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGE Corp position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' long position.| PGE Corp vs. Consolidated Edison | PGE Corp vs. Southern Company | PGE Corp vs. Entergy | PGE Corp vs. Pinnacle West Capital |
| Marine Products vs. LCI Industries | Marine Products vs. MCBC Holdings | Marine Products vs. Winnebago Industries | Marine Products vs. Thor Industries |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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