Correlation Between PropertyGuru and IAC
Can any of the company-specific risk be diversified away by investing in both PropertyGuru and IAC 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 PropertyGuru and IAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PropertyGuru Group and IAC Inc, you can compare the effects of market volatilities on PropertyGuru and IAC 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 PropertyGuru with a short position of IAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of PropertyGuru and IAC.
Diversification Opportunities for PropertyGuru and IAC
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PropertyGuru and IAC is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding PropertyGuru Group and IAC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAC Inc and PropertyGuru 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 PropertyGuru Group are associated (or correlated) with IAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAC Inc has no effect on the direction of PropertyGuru i.e., PropertyGuru and IAC go up and down completely randomly.
Pair Corralation between PropertyGuru and IAC
Given the investment horizon of 90 days PropertyGuru Group is expected to generate 1.16 times more return on investment than IAC. However, PropertyGuru is 1.16 times more volatile than IAC Inc. It trades about 0.04 of its potential returns per unit of risk. IAC Inc is currently generating about 0.01 per unit of risk. If you would invest 454.00 in PropertyGuru Group on August 31, 2024 and sell it today you would earn a total of 210.00 from holding PropertyGuru Group or generate 46.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PropertyGuru Group vs. IAC Inc
Performance |
| Timeline |
| PropertyGuru Group |
| IAC Inc |
PropertyGuru and IAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PropertyGuru and IAC
The main advantage of trading using opposite PropertyGuru and IAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PropertyGuru position performs unexpectedly, IAC 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 IAC will offset losses from the drop in IAC's long position.| PropertyGuru vs. Comscore | PropertyGuru vs. Cheetah Mobile | PropertyGuru vs. EverQuote Class A | PropertyGuru vs. DouYu International Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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