Correlation Between VGI Public and Origin Property
Can any of the company-specific risk be diversified away by investing in both VGI Public and Origin Property 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 VGI Public and Origin Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VGI Public and Origin Property PCL, you can compare the effects of market volatilities on VGI Public and Origin Property 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 VGI Public with a short position of Origin Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of VGI Public and Origin Property.
Diversification Opportunities for VGI Public and Origin Property
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between VGI and Origin is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding VGI Public and Origin Property PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Property PCL and VGI 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 VGI Public are associated (or correlated) with Origin Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Property PCL has no effect on the direction of VGI Public i.e., VGI Public and Origin Property go up and down completely randomly.
Pair Corralation between VGI Public and Origin Property
Assuming the 90 days trading horizon VGI Public is expected to generate 22.21 times more return on investment than Origin Property. However, VGI Public is 22.21 times more volatile than Origin Property PCL. It trades about 0.04 of its potential returns per unit of risk. Origin Property PCL is currently generating about -0.09 per unit of risk. If you would invest 408.00 in VGI Public on September 14, 2024 and sell it today you would lose (128.00) from holding VGI Public or give up 31.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
VGI Public vs. Origin Property PCL
Performance |
| Timeline |
| VGI Public |
| Origin Property PCL |
VGI Public and Origin Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VGI Public and Origin Property
The main advantage of trading using opposite VGI Public and Origin Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VGI Public position performs unexpectedly, Origin Property 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 Origin Property will offset losses from the drop in Origin Property's long position.| VGI Public vs. Synnex Public | VGI Public vs. SVI Public | VGI Public vs. Interlink Communication Public | VGI Public vs. The Erawan Group |
| Origin Property vs. Wave Entertainment Public | Origin Property vs. Vibhavadi Medical Center | Origin Property vs. VGI Public | Origin Property vs. WHA 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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