Correlation Between CHRYSALIS INVESTMENTS and Impala Platinum
Can any of the company-specific risk be diversified away by investing in both CHRYSALIS INVESTMENTS and Impala Platinum 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 CHRYSALIS INVESTMENTS and Impala Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHRYSALIS INVESTMENTS LTD and Impala Platinum Holdings, you can compare the effects of market volatilities on CHRYSALIS INVESTMENTS and Impala Platinum 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 CHRYSALIS INVESTMENTS with a short position of Impala Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHRYSALIS INVESTMENTS and Impala Platinum.
Diversification Opportunities for CHRYSALIS INVESTMENTS and Impala Platinum
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHRYSALIS and Impala is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding CHRYSALIS INVESTMENTS LTD and Impala Platinum Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impala Platinum Holdings and CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS LTD are associated (or correlated) with Impala Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impala Platinum Holdings has no effect on the direction of CHRYSALIS INVESTMENTS i.e., CHRYSALIS INVESTMENTS and Impala Platinum go up and down completely randomly.
Pair Corralation between CHRYSALIS INVESTMENTS and Impala Platinum
Assuming the 90 days horizon CHRYSALIS INVESTMENTS LTD is expected to generate 0.65 times more return on investment than Impala Platinum. However, CHRYSALIS INVESTMENTS LTD is 1.53 times less risky than Impala Platinum. It trades about 0.25 of its potential returns per unit of risk. Impala Platinum Holdings is currently generating about -0.09 per unit of risk. If you would invest 115.00 in CHRYSALIS INVESTMENTS LTD on October 10, 2024 and sell it today you would earn a total of 10.00 from holding CHRYSALIS INVESTMENTS LTD or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHRYSALIS INVESTMENTS LTD vs. Impala Platinum Holdings
Performance |
| Timeline |
| CHRYSALIS INVESTMENTS LTD |
| Impala Platinum Holdings |
CHRYSALIS INVESTMENTS and Impala Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHRYSALIS INVESTMENTS and Impala Platinum
The main advantage of trading using opposite CHRYSALIS INVESTMENTS and Impala Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHRYSALIS INVESTMENTS position performs unexpectedly, Impala Platinum 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 Impala Platinum will offset losses from the drop in Impala Platinum's long position.| CHRYSALIS INVESTMENTS vs. Axway Software SA | CHRYSALIS INVESTMENTS vs. AXWAY SOFTWARE EO | CHRYSALIS INVESTMENTS vs. CHINA TONTINE WINES | CHRYSALIS INVESTMENTS vs. FORMPIPE SOFTWARE AB |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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