Correlation Between Actinogen Medical and Platinum Asia
Can any of the company-specific risk be diversified away by investing in both Actinogen Medical and Platinum Asia 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 Actinogen Medical and Platinum Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actinogen Medical and Platinum Asia Investments, you can compare the effects of market volatilities on Actinogen Medical and Platinum Asia 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 Actinogen Medical with a short position of Platinum Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actinogen Medical and Platinum Asia.
Diversification Opportunities for Actinogen Medical and Platinum Asia
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Actinogen and Platinum is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and Platinum Asia Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asia Investments and Actinogen Medical 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 Actinogen Medical are associated (or correlated) with Platinum Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asia Investments has no effect on the direction of Actinogen Medical i.e., Actinogen Medical and Platinum Asia go up and down completely randomly.
Pair Corralation between Actinogen Medical and Platinum Asia
Assuming the 90 days trading horizon Actinogen Medical is expected to generate 3.78 times more return on investment than Platinum Asia. However, Actinogen Medical is 3.78 times more volatile than Platinum Asia Investments. It trades about -0.01 of its potential returns per unit of risk. Platinum Asia Investments is currently generating about -0.31 per unit of risk. If you would invest 2.60 in Actinogen Medical on August 29, 2024 and sell it today you would lose (0.10) from holding Actinogen Medical or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Actinogen Medical vs. Platinum Asia Investments
Performance |
| Timeline |
| Actinogen Medical |
| Platinum Asia Investments |
Actinogen Medical and Platinum Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actinogen Medical and Platinum Asia
The main advantage of trading using opposite Actinogen Medical and Platinum Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actinogen Medical position performs unexpectedly, Platinum Asia 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 Asia will offset losses from the drop in Platinum Asia's long position.| Actinogen Medical vs. Westpac Banking | Actinogen Medical vs. Champion Iron | Actinogen Medical vs. Ridley | Actinogen Medical vs. Peel Mining |
| Platinum Asia vs. Champion Iron | Platinum Asia vs. Ridley | Platinum Asia vs. Peel Mining | Platinum Asia vs. Australian Dairy Farms |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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