Correlation Between PLATO GOLD and Cass Information
Can any of the company-specific risk be diversified away by investing in both PLATO GOLD and Cass Information 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 Cass Information 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 Cass Information Systems, you can compare the effects of market volatilities on PLATO GOLD and Cass Information 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 Cass Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLATO GOLD and Cass Information.
Diversification Opportunities for PLATO GOLD and Cass Information
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PLATO and Cass is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding PLATO GOLD P and Cass Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cass Information Systems 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 Cass Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cass Information Systems has no effect on the direction of PLATO GOLD i.e., PLATO GOLD and Cass Information go up and down completely randomly.
Pair Corralation between PLATO GOLD and Cass Information
Assuming the 90 days horizon PLATO GOLD P is expected to generate 23.69 times more return on investment than Cass Information. However, PLATO GOLD is 23.69 times more volatile than Cass Information Systems. It trades about 0.09 of its potential returns per unit of risk. Cass Information Systems is currently generating about 0.02 per unit of risk. If you would invest 1.10 in PLATO GOLD P on August 28, 2024 and sell it today you would lose (0.75) from holding PLATO GOLD P or give up 68.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLATO GOLD P vs. Cass Information Systems
Performance |
| Timeline |
| PLATO GOLD P |
| Cass Information Systems |
PLATO GOLD and Cass Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLATO GOLD and Cass Information
The main advantage of trading using opposite PLATO GOLD and Cass Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLATO GOLD position performs unexpectedly, Cass Information 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 Cass Information will offset losses from the drop in Cass Information's long position.| PLATO GOLD vs. Franco Nevada | PLATO GOLD vs. Agnico Eagle Mines | PLATO GOLD vs. Superior Plus Corp | PLATO GOLD vs. NMI Holdings |
| Cass Information vs. Apollo Investment Corp | Cass Information vs. SLR Investment Corp | Cass Information vs. New Residential Investment | Cass Information vs. HYDROFARM HLD GRP |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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