Correlation Between Inventis and Pengana Private

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

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

Diversification Opportunities for Inventis and Pengana Private

0.22

Correlation Coefficient

Inventis  Pengana Private

Modest diversification

The 3 months correlation between Inventis and Pengana is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Inventis 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 Inventis 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 Inventis 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 Inventis i.e., Inventis and Pengana Private go up and down completely randomly.

Pair Corralation between Inventis and Pengana Private

Assuming the 90 days trading horizon Inventis is expected to under-perform the Pengana Private. In addition to that, Inventis is 1.03 times more volatile than Pengana Private Equity. It trades about -0.06 of its total potential returns per unit of risk. Pengana Private Equity is currently generating about -0.06 per unit of volatility. If you would invest  122.00  in Pengana Private Equity on September 4, 2024 and sell it today you would lose (9.00) from holding Pengana Private Equity or give up 7.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Inventis  vs.  Pengana Private Equity

Inventis

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Inventis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm 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 latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Inventis and Pengana Private

The main advantage of trading using opposite Inventis and Pengana Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventis 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 Inventis 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.