Correlation Between Peel Mining and Pengana Private
Can any of the company-specific risk be diversified away by investing in both Peel Mining and Pengana Private 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 Peel Mining and Pengana Private into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peel Mining and Pengana Private Equity, you can compare the effects of market volatilities on Peel Mining and Pengana Private 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 Peel Mining with a short position of Pengana Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peel Mining and Pengana Private.
Diversification Opportunities for Peel Mining and Pengana Private
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Peel and Pengana is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Peel Mining and Pengana Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengana Private Equity and Peel Mining 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 Peel Mining are associated (or correlated) with Pengana Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengana Private Equity has no effect on the direction of Peel Mining i.e., Peel Mining and Pengana Private go up and down completely randomly.
Pair Corralation between Peel Mining and Pengana Private
Assuming the 90 days trading horizon Peel Mining is expected to under-perform the Pengana Private. In addition to that, Peel Mining is 2.69 times more volatile than Pengana Private Equity. It trades about -0.11 of its total potential returns per unit of risk. Pengana Private Equity is currently generating about -0.17 per unit of volatility. If you would invest 121.00 in Pengana Private Equity on September 3, 2024 and sell it today you would lose (5.00) from holding Pengana Private Equity or give up 4.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peel Mining vs. Pengana Private Equity
Performance |
| Timeline |
| Peel Mining |
| Pengana Private Equity |
Peel Mining and Pengana Private Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peel Mining and Pengana Private
The main advantage of trading using opposite Peel Mining and Pengana Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peel Mining position performs unexpectedly, Pengana Private 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 Pengana Private will offset losses from the drop in Pengana Private's long position.| Peel Mining vs. Northern Star Resources | Peel Mining vs. Evolution Mining | Peel Mining vs. Bluescope Steel | Peel Mining vs. Aneka Tambang Tbk |
| Pengana Private vs. Champion Iron | Pengana Private vs. iShares Global Healthcare | Pengana Private vs. Peel Mining | Pengana Private vs. Australian Dairy Farms |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Directory Find actively traded commodities issued by global exchanges |