Correlation Between PRG Public and Workpoint Entertainment
Can any of the company-specific risk be diversified away by investing in both PRG Public and Workpoint Entertainment 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 PRG Public and Workpoint Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PRG Public and Workpoint Entertainment Public, you can compare the effects of market volatilities on PRG Public and Workpoint Entertainment 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 PRG Public with a short position of Workpoint Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of PRG Public and Workpoint Entertainment.
Diversification Opportunities for PRG Public and Workpoint Entertainment
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between PRG and Workpoint is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding PRG Public and Workpoint Entertainment Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workpoint Entertainment and PRG Public 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 PRG Public are associated (or correlated) with Workpoint Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workpoint Entertainment has no effect on the direction of PRG Public i.e., PRG Public and Workpoint Entertainment go up and down completely randomly.
Pair Corralation between PRG Public and Workpoint Entertainment
Assuming the 90 days trading horizon PRG Public is expected to generate 1.41 times more return on investment than Workpoint Entertainment. However, PRG Public is 1.41 times more volatile than Workpoint Entertainment Public. It trades about 0.06 of its potential returns per unit of risk. Workpoint Entertainment Public is currently generating about 0.04 per unit of risk. If you would invest 1,091 in PRG Public on August 27, 2024 and sell it today you would lose (196.00) from holding PRG Public or give up 17.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
PRG Public vs. Workpoint Entertainment Public
Performance |
| Timeline |
| PRG Public |
| Workpoint Entertainment |
PRG Public and Workpoint Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PRG Public and Workpoint Entertainment
The main advantage of trading using opposite PRG Public and Workpoint Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PRG Public position performs unexpectedly, Workpoint Entertainment 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 Workpoint Entertainment will offset losses from the drop in Workpoint Entertainment's long position.The idea behind PRG Public and Workpoint Entertainment Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Workpoint Entertainment vs. BEC World Public | Workpoint Entertainment vs. Beauty Community Public | Workpoint Entertainment vs. Major Cineplex Group | Workpoint Entertainment vs. True Public |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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