Correlation Between Actinogen Medical and Platinum Asset
Can any of the company-specific risk be diversified away by investing in both Actinogen Medical and Platinum Asset 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 Asset 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 Asset Management, you can compare the effects of market volatilities on Actinogen Medical and Platinum Asset 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 Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actinogen Medical and Platinum Asset.
Diversification Opportunities for Actinogen Medical and Platinum Asset
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Actinogen and Platinum is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and Platinum Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asset Management 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 Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asset Management has no effect on the direction of Actinogen Medical i.e., Actinogen Medical and Platinum Asset go up and down completely randomly.
Pair Corralation between Actinogen Medical and Platinum Asset
Assuming the 90 days trading horizon Actinogen Medical is expected to generate 2.87 times more return on investment than Platinum Asset. However, Actinogen Medical is 2.87 times more volatile than Platinum Asset Management. It trades about 0.14 of its potential returns per unit of risk. Platinum Asset Management is currently generating about -0.42 per unit of risk. If you would invest 2.40 in Actinogen Medical on September 1, 2024 and sell it today you would earn a total of 0.30 from holding Actinogen Medical or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Actinogen Medical vs. Platinum Asset Management
Performance |
| Timeline |
| Actinogen Medical |
| Platinum Asset Management |
Actinogen Medical and Platinum Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actinogen Medical and Platinum Asset
The main advantage of trading using opposite Actinogen Medical and Platinum Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actinogen Medical position performs unexpectedly, Platinum Asset 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 Asset will offset losses from the drop in Platinum Asset's long position.| Actinogen Medical vs. Aneka Tambang Tbk | Actinogen Medical vs. Commonwealth Bank | Actinogen Medical vs. Commonwealth Bank of | Actinogen Medical vs. Australia and New |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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