Correlation Between Pengana Private and CAR GROUP
Can any of the company-specific risk be diversified away by investing in both Pengana Private and CAR GROUP 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 CAR GROUP 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 CAR GROUP LIMITED, you can compare the effects of market volatilities on Pengana Private and CAR GROUP 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 CAR GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengana Private and CAR GROUP.
Diversification Opportunities for Pengana Private and CAR GROUP
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pengana and CAR is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Pengana Private Equity and CAR GROUP LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAR GROUP LIMITED 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 CAR GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAR GROUP LIMITED has no effect on the direction of Pengana Private i.e., Pengana Private and CAR GROUP go up and down completely randomly.
Pair Corralation between Pengana Private and CAR GROUP
Assuming the 90 days trading horizon Pengana Private Equity is expected to under-perform the CAR GROUP. In addition to that, Pengana Private is 1.39 times more volatile than CAR GROUP LIMITED. It trades about -0.02 of its total potential returns per unit of risk. CAR GROUP LIMITED is currently generating about 0.11 per unit of volatility. If you would invest 2,052 in CAR GROUP LIMITED on September 3, 2024 and sell it today you would earn a total of 2,098 from holding CAR GROUP LIMITED or generate 102.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengana Private Equity vs. CAR GROUP LIMITED
Performance |
| Timeline |
| Pengana Private Equity |
| CAR GROUP LIMITED |
Pengana Private and CAR GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengana Private and CAR GROUP
The main advantage of trading using opposite Pengana Private and CAR GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengana Private position performs unexpectedly, CAR GROUP 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 CAR GROUP will offset losses from the drop in CAR GROUP's long position.| Pengana Private vs. ABACUS STORAGE KING | Pengana Private vs. Champion Iron | Pengana Private vs. iShares Global Healthcare | Pengana Private vs. Peel Mining |
| CAR GROUP vs. The Environmental Group | CAR GROUP vs. Macquarie Technology Group | CAR GROUP vs. TTG Fintech | CAR GROUP vs. Spirit Telecom |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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