Correlation Between Polymetal International and Impala Platinum
Can any of the company-specific risk be diversified away by investing in both Polymetal International and Impala Platinum 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 Polymetal International and Impala Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polymetal International PLC and Impala Platinum Holdings, you can compare the effects of market volatilities on Polymetal International and Impala Platinum 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 Polymetal International with a short position of Impala Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polymetal International and Impala Platinum.
Diversification Opportunities for Polymetal International and Impala Platinum
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Polymetal and Impala is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Polymetal International PLC and Impala Platinum Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impala Platinum Holdings and Polymetal International 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 Polymetal International PLC are associated (or correlated) with Impala Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impala Platinum Holdings has no effect on the direction of Polymetal International i.e., Polymetal International and Impala Platinum go up and down completely randomly.
Pair Corralation between Polymetal International and Impala Platinum
If you would invest 140.00 in Polymetal International PLC on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Polymetal International PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Polymetal International PLC vs. Impala Platinum Holdings
Performance |
| Timeline |
| Polymetal International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Impala Platinum Holdings |
Polymetal International and Impala Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polymetal International and Impala Platinum
The main advantage of trading using opposite Polymetal International and Impala Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polymetal International position performs unexpectedly, Impala Platinum 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 Impala Platinum will offset losses from the drop in Impala Platinum's long position.| Polymetal International vs. Fresnillo PLC | Polymetal International vs. Summa Silver Corp | Polymetal International vs. GoGold Resources | Polymetal International vs. Scottie Resources Corp |
| Impala Platinum vs. Anglo American Platinum | Impala Platinum vs. Sibanye Gold Ltd | Impala Platinum vs. Anglo American PLC | Impala Platinum vs. Fortescue Metals Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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