Correlation Between Staude Capital and Pengana Private

Can any of the company-specific risk be diversified away by investing in both Staude Capital and Pengana Private 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 Staude Capital and Pengana Private into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Staude Capital Global and Pengana Private Equity, you can compare the effects of market volatilities on Staude Capital and Pengana Private 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 Staude Capital with a short position of Pengana Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staude Capital and Pengana Private.

Diversification Opportunities for Staude Capital and Pengana Private

-0.26

Correlation Coefficient

Staude Capital  Pengana Private

Very good diversification

The 3 months correlation between Staude and Pengana is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Staude Capital Global and Pengana Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengana Private Equity and Staude Capital 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 Staude Capital Global are associated (or correlated) with Pengana Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengana Private Equity has no effect on the direction of Staude Capital i.e., Staude Capital and Pengana Private go up and down completely randomly.

Pair Corralation between Staude Capital and Pengana Private

Assuming the 90 days trading horizon Staude Capital Global is expected to generate 0.92 times more return on investment than Pengana Private. However, Staude Capital Global is 1.09 times less risky than Pengana Private. It trades about 0.06 of its potential returns per unit of risk. Pengana Private Equity is currently generating about -0.06 per unit of risk. If you would invest  124.00  in Staude Capital Global on September 2, 2024 and sell it today you would earn a total of  6.00  from holding Staude Capital Global or generate 4.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Staude Capital Global  vs.  Pengana Private Equity

Staude Capital Global

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Staude Capital Global are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Staude Capital is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pengana Private Equity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pengana Private Equity has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Pengana Private is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Staude Capital and Pengana Private

The main advantage of trading using opposite Staude Capital and Pengana Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staude Capital position performs unexpectedly, Pengana Private 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 Pengana Private will offset losses from the drop in Pengana Private's long position.

The idea behind Staude Capital Global and Pengana Private Equity 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.