Correlation Between Strong Global and PGE Corp
Can any of the company-specific risk be diversified away by investing in both Strong Global and PGE Corp 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 Strong Global and PGE Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strong Global Entertainment, and PGE Corp, you can compare the effects of market volatilities on Strong Global and PGE Corp 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 Strong Global with a short position of PGE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strong Global and PGE Corp.
Diversification Opportunities for Strong Global and PGE Corp
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Strong and PGE is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Strong Global Entertainment, and PGE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGE Corp and Strong Global 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 Strong Global Entertainment, are associated (or correlated) with PGE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGE Corp has no effect on the direction of Strong Global i.e., Strong Global and PGE Corp go up and down completely randomly.
Pair Corralation between Strong Global and PGE Corp
If you would invest 1,977 in PGE Corp on August 30, 2024 and sell it today you would earn a total of 186.00 from holding PGE Corp or generate 9.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Strong Global Entertainment, vs. PGE Corp
Performance |
| Timeline |
| Strong Global Entert |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| PGE Corp |
Strong Global and PGE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strong Global and PGE Corp
The main advantage of trading using opposite Strong Global and PGE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strong Global position performs unexpectedly, PGE Corp 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 PGE Corp will offset losses from the drop in PGE Corp's long position.| Strong Global vs. National CineMedia | Strong Global vs. Tower One Wireless | Strong Global vs. Acco Brands | Strong Global vs. Here Media |
| PGE Corp vs. DTE Energy | PGE Corp vs. Ameren Corp | PGE Corp vs. CenterPoint Energy | PGE Corp vs. Pinnacle West Capital |
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 Stocks Directory module to find actively traded stocks across global markets.
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