Correlation Between GANGLONG CHINA and Platinum Investment
Can any of the company-specific risk be diversified away by investing in both GANGLONG CHINA and Platinum Investment 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 GANGLONG CHINA and Platinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GANGLONG CHINA PRGRLTD and Platinum Investment Management, you can compare the effects of market volatilities on GANGLONG CHINA and Platinum Investment 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 GANGLONG CHINA with a short position of Platinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of GANGLONG CHINA and Platinum Investment.
Diversification Opportunities for GANGLONG CHINA and Platinum Investment
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GANGLONG and Platinum is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding GANGLONG CHINA PRGRLTD and Platinum Investment Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Investment and GANGLONG CHINA 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 GANGLONG CHINA PRGRLTD are associated (or correlated) with Platinum Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Investment has no effect on the direction of GANGLONG CHINA i.e., GANGLONG CHINA and Platinum Investment go up and down completely randomly.
Pair Corralation between GANGLONG CHINA and Platinum Investment
Assuming the 90 days horizon GANGLONG CHINA PRGRLTD is expected to generate 25.21 times more return on investment than Platinum Investment. However, GANGLONG CHINA is 25.21 times more volatile than Platinum Investment Management. It trades about 0.17 of its potential returns per unit of risk. Platinum Investment Management is currently generating about 0.06 per unit of risk. If you would invest 0.75 in GANGLONG CHINA PRGRLTD on October 28, 2024 and sell it today you would earn a total of 0.15 from holding GANGLONG CHINA PRGRLTD or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GANGLONG CHINA PRGRLTD vs. Platinum Investment Management
Performance |
| Timeline |
| GANGLONG CHINA PRGRLTD |
| Platinum Investment |
GANGLONG CHINA and Platinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GANGLONG CHINA and Platinum Investment
The main advantage of trading using opposite GANGLONG CHINA and Platinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GANGLONG CHINA position performs unexpectedly, Platinum Investment 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 Platinum Investment will offset losses from the drop in Platinum Investment's long position.| GANGLONG CHINA vs. Platinum Investment Management | GANGLONG CHINA vs. Zijin Mining Group | GANGLONG CHINA vs. Brockhaus Capital Management | GANGLONG CHINA vs. Q2M Managementberatung AG |
| Platinum Investment vs. KENEDIX OFFICE INV | Platinum Investment vs. Northern Data AG | Platinum Investment vs. CITY OFFICE REIT | Platinum Investment vs. Infrastrutture Wireless Italiane |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |