Correlation Between PM Capital and Pengana Private
Can any of the company-specific risk be diversified away by investing in both PM Capital 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 PM Capital and Pengana Private into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PM Capital Global and Pengana Private Equity, you can compare the effects of market volatilities on PM Capital 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 PM Capital with a short position of Pengana Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of PM Capital and Pengana Private.
Diversification Opportunities for PM Capital and Pengana Private
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between PGF and Pengana is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding PM Capital Global 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 PM Capital 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 PM Capital Global 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 PM Capital i.e., PM Capital and Pengana Private go up and down completely randomly.
Pair Corralation between PM Capital and Pengana Private
Assuming the 90 days trading horizon PM Capital Global is expected to generate 0.91 times more return on investment than Pengana Private. However, PM Capital Global is 1.09 times less risky than Pengana Private. It trades about -0.09 of its potential returns per unit of risk. Pengana Private Equity is currently generating about -0.28 per unit of risk. If you would invest 234.00 in PM Capital Global on September 1, 2024 and sell it today you would lose (6.00) from holding PM Capital Global or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PM Capital Global vs. Pengana Private Equity
Performance |
| Timeline |
| PM Capital Global |
| Pengana Private Equity |
PM Capital and Pengana Private Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PM Capital and Pengana Private
The main advantage of trading using opposite PM Capital and Pengana Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PM Capital 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.| PM Capital vs. Skycity Entertainment Group | PM Capital vs. Retail Food Group | PM Capital vs. Truscott Mining Corp | PM Capital vs. Autosports Group |
| Pengana Private vs. Queste Communications | Pengana Private vs. Computershare | Pengana Private vs. Australian Unity Office | Pengana Private vs. Carawine Resources Limited |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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