Correlation Between Prodigy Public and Pico Public
Can any of the company-specific risk be diversified away by investing in both Prodigy Public and Pico 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 Prodigy Public and Pico Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prodigy Public and Pico Public, you can compare the effects of market volatilities on Prodigy Public and Pico 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 Prodigy Public with a short position of Pico Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prodigy Public and Pico Public.
Diversification Opportunities for Prodigy Public and Pico Public
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Prodigy and Pico is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Prodigy Public and Pico Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pico Public and Prodigy Public 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 Prodigy Public are associated (or correlated) with Pico Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pico Public has no effect on the direction of Prodigy Public i.e., Prodigy Public and Pico Public go up and down completely randomly.
Pair Corralation between Prodigy Public and Pico Public
Assuming the 90 days trading horizon Prodigy Public is expected to generate 16.75 times less return on investment than Pico Public. But when comparing it to its historical volatility, Prodigy Public is 1.98 times less risky than Pico Public. It trades about 0.01 of its potential returns per unit of risk. Pico Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Pico Public on August 29, 2024 and sell it today you would earn a total of 8.00 from holding Pico Public or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Prodigy Public vs. Pico Public
Performance |
| Timeline |
| Prodigy Public |
| Pico Public |
Prodigy Public and Pico Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prodigy Public and Pico Public
The main advantage of trading using opposite Prodigy Public and Pico Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prodigy Public position performs unexpectedly, Pico 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 Pico Public will offset losses from the drop in Pico Public's long position.| Prodigy Public vs. Kingsmen CMTI Public | Prodigy Public vs. Project Planning Service | Prodigy Public vs. Power Solution Technologies | Prodigy Public vs. Hydrotek Public |
| Pico Public vs. Prodigy Public | Pico Public vs. Panjawattana Plastic Public | Pico Public vs. Phol Dhanya Public | Pico Public vs. Moong Pattana International |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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