Correlation Between Progressive Planet and South Star
Can any of the company-specific risk be diversified away by investing in both Progressive Planet and South Star 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 Progressive Planet and South Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progressive Planet Solutions and South Star Battery, you can compare the effects of market volatilities on Progressive Planet and South Star 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 Progressive Planet with a short position of South Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progressive Planet and South Star.
Diversification Opportunities for Progressive Planet and South Star
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Progressive and South is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Progressive Planet Solutions and South Star Battery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on South Star Battery and Progressive Planet 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 Progressive Planet Solutions are associated (or correlated) with South Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of South Star Battery has no effect on the direction of Progressive Planet i.e., Progressive Planet and South Star go up and down completely randomly.
Pair Corralation between Progressive Planet and South Star
Assuming the 90 days horizon Progressive Planet Solutions is expected to generate 1.38 times more return on investment than South Star. However, Progressive Planet is 1.38 times more volatile than South Star Battery. It trades about 0.19 of its potential returns per unit of risk. South Star Battery is currently generating about -0.09 per unit of risk. If you would invest 11.00 in Progressive Planet Solutions on August 29, 2024 and sell it today you would earn a total of 3.00 from holding Progressive Planet Solutions or generate 27.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Progressive Planet Solutions vs. South Star Battery
Performance |
| Timeline |
| Progressive Planet |
| South Star Battery |
Progressive Planet and South Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progressive Planet and South Star
The main advantage of trading using opposite Progressive Planet and South Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progressive Planet position performs unexpectedly, South Star 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 South Star will offset losses from the drop in South Star's long position.| Progressive Planet vs. Avarone Metals | Progressive Planet vs. Amarc Resources | Progressive Planet vs. Huntsman Exploration | Progressive Planet vs. Adriatic Metals PLC |
| South Star vs. ZincX Resources Corp | South Star vs. Nuinsco Resources Limited | South Star vs. Qubec Nickel Corp | South Star vs. Rockridge Resources |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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