Correlation Between PLATO GOLD and KRISPY KREME
Can any of the company-specific risk be diversified away by investing in both PLATO GOLD and KRISPY KREME 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 PLATO GOLD and KRISPY KREME into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLATO GOLD P and KRISPY KREME DL 01, you can compare the effects of market volatilities on PLATO GOLD and KRISPY KREME 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 PLATO GOLD with a short position of KRISPY KREME. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLATO GOLD and KRISPY KREME.
Diversification Opportunities for PLATO GOLD and KRISPY KREME
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PLATO and KRISPY is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding PLATO GOLD P and KRISPY KREME DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRISPY KREME DL and PLATO GOLD 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 PLATO GOLD P are associated (or correlated) with KRISPY KREME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRISPY KREME DL has no effect on the direction of PLATO GOLD i.e., PLATO GOLD and KRISPY KREME go up and down completely randomly.
Pair Corralation between PLATO GOLD and KRISPY KREME
Assuming the 90 days horizon PLATO GOLD P is expected to generate 16.03 times more return on investment than KRISPY KREME. However, PLATO GOLD is 16.03 times more volatile than KRISPY KREME DL 01. It trades about 0.21 of its potential returns per unit of risk. KRISPY KREME DL 01 is currently generating about 0.0 per unit of risk. If you would invest 0.35 in PLATO GOLD P on August 29, 2024 and sell it today you would earn a total of 0.05 from holding PLATO GOLD P or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
PLATO GOLD P vs. KRISPY KREME DL 01
Performance |
| Timeline |
| PLATO GOLD P |
| KRISPY KREME DL |
PLATO GOLD and KRISPY KREME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLATO GOLD and KRISPY KREME
The main advantage of trading using opposite PLATO GOLD and KRISPY KREME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLATO GOLD position performs unexpectedly, KRISPY KREME 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 KRISPY KREME will offset losses from the drop in KRISPY KREME's long position.| PLATO GOLD vs. COMMERCIAL VEHICLE | PLATO GOLD vs. GRUPO CARSO A1 | PLATO GOLD vs. Harmony Gold Mining | PLATO GOLD vs. GEELY AUTOMOBILE |
| KRISPY KREME vs. TOREX SEMICONDUCTOR LTD | KRISPY KREME vs. CARSALESCOM | KRISPY KREME vs. Magnachip Semiconductor | KRISPY KREME vs. Tradeweb Markets |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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