Correlation Between Genertec Universal and Platinum Group
Can any of the company-specific risk be diversified away by investing in both Genertec Universal and Platinum Group 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 Genertec Universal and Platinum Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genertec Universal Medical and Platinum Group Metals, you can compare the effects of market volatilities on Genertec Universal and Platinum Group 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 Genertec Universal with a short position of Platinum Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genertec Universal and Platinum Group.
Diversification Opportunities for Genertec Universal and Platinum Group
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genertec and Platinum is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Genertec Universal Medical and Platinum Group Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Group Metals and Genertec Universal 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 Genertec Universal Medical are associated (or correlated) with Platinum Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Group Metals has no effect on the direction of Genertec Universal i.e., Genertec Universal and Platinum Group go up and down completely randomly.
Pair Corralation between Genertec Universal and Platinum Group
Assuming the 90 days horizon Genertec Universal is expected to generate 5.62 times less return on investment than Platinum Group. But when comparing it to its historical volatility, Genertec Universal Medical is 1.51 times less risky than Platinum Group. It trades about 0.04 of its potential returns per unit of risk. Platinum Group Metals is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 110.00 in Platinum Group Metals on October 24, 2024 and sell it today you would earn a total of 16.00 from holding Platinum Group Metals or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genertec Universal Medical vs. Platinum Group Metals
Performance |
| Timeline |
| Genertec Universal |
| Platinum Group Metals |
Genertec Universal and Platinum Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genertec Universal and Platinum Group
The main advantage of trading using opposite Genertec Universal and Platinum Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genertec Universal position performs unexpectedly, Platinum Group 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 Group will offset losses from the drop in Platinum Group's long position.| Genertec Universal vs. Evolent Health | Genertec Universal vs. CompuGroup Medical SE | Genertec Universal vs. Compugroup Medical SE | Genertec Universal vs. Superior Plus Corp |
| Platinum Group vs. Chiba Bank | Platinum Group vs. RCS MediaGroup SpA | Platinum Group vs. Discover Financial Services | Platinum Group vs. PARKEN Sport Entertainment |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |