Correlation Between Avenira and Platinum Asset
Can any of the company-specific risk be diversified away by investing in both Avenira 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 Avenira and Platinum Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avenira and Platinum Asset Management, you can compare the effects of market volatilities on Avenira 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 Avenira with a short position of Platinum Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avenira and Platinum Asset.
Diversification Opportunities for Avenira and Platinum Asset
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Avenira and Platinum is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Avenira 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 Avenira 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 Avenira 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 Avenira i.e., Avenira and Platinum Asset go up and down completely randomly.
Pair Corralation between Avenira and Platinum Asset
Assuming the 90 days trading horizon Avenira is expected to under-perform the Platinum Asset. In addition to that, Avenira is 4.06 times more volatile than Platinum Asset Management. It trades about -0.04 of its total potential returns per unit of risk. Platinum Asset Management is currently generating about -0.14 per unit of volatility. If you would invest 72.00 in Platinum Asset Management on November 3, 2024 and sell it today you would lose (4.00) from holding Platinum Asset Management or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Avenira vs. Platinum Asset Management
Performance |
| Timeline |
| Avenira |
| Platinum Asset Management |
Avenira and Platinum Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avenira and Platinum Asset
The main advantage of trading using opposite Avenira and Platinum Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avenira 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.| Avenira vs. Hotel Property Investments | Avenira vs. Kkr Credit Income | Avenira vs. MFF Capital Investments | Avenira vs. Medibank Private |
| Platinum Asset vs. Aneka Tambang Tbk | Platinum Asset vs. BHP Group Limited | Platinum Asset vs. Ecofibre | Platinum Asset vs. iShares Global Healthcare |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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