Correlation Between Pengana Private and AiMedia Technologies
Can any of the company-specific risk be diversified away by investing in both Pengana Private and AiMedia Technologies 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 Pengana Private and AiMedia Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pengana Private Equity and AiMedia Technologies, you can compare the effects of market volatilities on Pengana Private and AiMedia Technologies 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 Pengana Private with a short position of AiMedia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengana Private and AiMedia Technologies.
Diversification Opportunities for Pengana Private and AiMedia Technologies
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pengana and AiMedia is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Pengana Private Equity and AiMedia Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AiMedia Technologies and Pengana Private 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 Pengana Private Equity are associated (or correlated) with AiMedia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AiMedia Technologies has no effect on the direction of Pengana Private i.e., Pengana Private and AiMedia Technologies go up and down completely randomly.
Pair Corralation between Pengana Private and AiMedia Technologies
Assuming the 90 days trading horizon Pengana Private is expected to generate 4.98 times less return on investment than AiMedia Technologies. But when comparing it to its historical volatility, Pengana Private Equity is 2.09 times less risky than AiMedia Technologies. It trades about 0.02 of its potential returns per unit of risk. AiMedia Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 76.00 in AiMedia Technologies on September 13, 2024 and sell it today you would earn a total of 7.00 from holding AiMedia Technologies or generate 9.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengana Private Equity vs. AiMedia Technologies
Performance |
| Timeline |
| Pengana Private Equity |
| AiMedia Technologies |
Pengana Private and AiMedia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengana Private and AiMedia Technologies
The main advantage of trading using opposite Pengana Private and AiMedia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengana Private position performs unexpectedly, AiMedia Technologies 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 AiMedia Technologies will offset losses from the drop in AiMedia Technologies' long position.| Pengana Private vs. Westpac Banking | Pengana Private vs. ABACUS STORAGE KING | Pengana Private vs. Odyssey Energy | Pengana Private vs. Ecofibre |
| AiMedia Technologies vs. Audio Pixels Holdings | AiMedia Technologies vs. Iodm | AiMedia Technologies vs. Nsx | AiMedia Technologies vs. TTG Fintech |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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