Correlation Between PEPKOR and Aeon Co
Can any of the company-specific risk be diversified away by investing in both PEPKOR and Aeon Co 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 PEPKOR and Aeon Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PEPKOR LTD and Aeon Co, you can compare the effects of market volatilities on PEPKOR and Aeon Co 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 PEPKOR with a short position of Aeon Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of PEPKOR and Aeon Co.
Diversification Opportunities for PEPKOR and Aeon Co
Poor diversification
The 3 months correlation between PEPKOR and Aeon is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding PEPKOR LTD and Aeon Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeon Co and PEPKOR 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 PEPKOR LTD are associated (or correlated) with Aeon Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeon Co has no effect on the direction of PEPKOR i.e., PEPKOR and Aeon Co go up and down completely randomly.
Pair Corralation between PEPKOR and Aeon Co
Assuming the 90 days trading horizon PEPKOR is expected to generate 5.11 times less return on investment than Aeon Co. But when comparing it to its historical volatility, PEPKOR LTD is 1.2 times less risky than Aeon Co. It trades about 0.06 of its potential returns per unit of risk. Aeon Co is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,030 in Aeon Co on August 31, 2025 and sell it today you would earn a total of 560.00 from holding Aeon Co or generate 54.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PEPKOR LTD vs. Aeon Co
Performance |
| Timeline |
| PEPKOR LTD |
| Aeon Co |
PEPKOR and Aeon Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PEPKOR and Aeon Co
The main advantage of trading using opposite PEPKOR and Aeon Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PEPKOR position performs unexpectedly, Aeon Co 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 Aeon Co will offset losses from the drop in Aeon Co's long position.| PEPKOR vs. BlueScope Steel Limited | PEPKOR vs. LANDSEA GREEN MANAGEMENT | PEPKOR vs. Sirona Biochem Corp | PEPKOR vs. MAANSHAN IRON H |
| Aeon Co vs. Forgame Holdings | Aeon Co vs. CONTAGIOUS GAMING INC | Aeon Co vs. International Game Technology | Aeon Co vs. Grupo Carso SAB |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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