Correlation Between Premier Exhibitions and Pool
Can any of the company-specific risk be diversified away by investing in both Premier Exhibitions and Pool 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 Premier Exhibitions and Pool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premier Exhibitions and Pool Corporation, you can compare the effects of market volatilities on Premier Exhibitions and Pool 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 Premier Exhibitions with a short position of Pool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Exhibitions and Pool.
Diversification Opportunities for Premier Exhibitions and Pool
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Premier and Pool is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Premier Exhibitions and Pool Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pool and Premier Exhibitions 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 Premier Exhibitions are associated (or correlated) with Pool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pool has no effect on the direction of Premier Exhibitions i.e., Premier Exhibitions and Pool go up and down completely randomly.
Pair Corralation between Premier Exhibitions and Pool
If you would invest 35,119 in Pool Corporation on September 14, 2024 and sell it today you would earn a total of 1,835 from holding Pool Corporation or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Premier Exhibitions vs. Pool Corp.
Performance |
| Timeline |
| Premier Exhibitions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Pool |
Premier Exhibitions and Pool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premier Exhibitions and Pool
The main advantage of trading using opposite Premier Exhibitions and Pool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Exhibitions position performs unexpectedly, Pool 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 Pool will offset losses from the drop in Pool's long position.| Premier Exhibitions vs. Pool Corporation | Premier Exhibitions vs. National Vision Holdings | Premier Exhibitions vs. Lululemon Athletica | Premier Exhibitions vs. Cedar Realty Trust |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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