Correlation Between TITAN MACHINERY and Impala Platinum
Can any of the company-specific risk be diversified away by investing in both TITAN MACHINERY 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 TITAN MACHINERY and Impala Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TITAN MACHINERY and Impala Platinum Holdings, you can compare the effects of market volatilities on TITAN MACHINERY 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 TITAN MACHINERY with a short position of Impala Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of TITAN MACHINERY and Impala Platinum.
Diversification Opportunities for TITAN MACHINERY and Impala Platinum
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between TITAN and Impala is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding TITAN MACHINERY 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 TITAN MACHINERY 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 TITAN MACHINERY 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 TITAN MACHINERY i.e., TITAN MACHINERY and Impala Platinum go up and down completely randomly.
Pair Corralation between TITAN MACHINERY and Impala Platinum
Assuming the 90 days trading horizon TITAN MACHINERY is expected to under-perform the Impala Platinum. But the stock apears to be less risky and, when comparing its historical volatility, TITAN MACHINERY is 1.07 times less risky than Impala Platinum. The stock trades about -0.12 of its potential returns per unit of risk. The Impala Platinum Holdings is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 546.00 in Impala Platinum Holdings on October 11, 2024 and sell it today you would lose (28.00) from holding Impala Platinum Holdings or give up 5.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TITAN MACHINERY vs. Impala Platinum Holdings
Performance |
| Timeline |
| TITAN MACHINERY |
| Impala Platinum Holdings |
TITAN MACHINERY and Impala Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TITAN MACHINERY and Impala Platinum
The main advantage of trading using opposite TITAN MACHINERY and Impala Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TITAN MACHINERY 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.| TITAN MACHINERY vs. Gaming and Leisure | TITAN MACHINERY vs. TEXAS ROADHOUSE | TITAN MACHINERY vs. ANTA SPORTS PRODUCT | TITAN MACHINERY vs. PLAYSTUDIOS A DL 0001 |
| Impala Platinum vs. Daito Trust Construction | Impala Platinum vs. AGRICULTBK HADR25 YC | Impala Platinum vs. TITAN MACHINERY | Impala Platinum vs. North American Construction |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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