Correlation Between Polymetal International and RJK Explorations
Can any of the company-specific risk be diversified away by investing in both Polymetal International and RJK Explorations 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 RJK Explorations 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 RJK Explorations, you can compare the effects of market volatilities on Polymetal International and RJK Explorations 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 RJK Explorations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polymetal International and RJK Explorations.
Diversification Opportunities for Polymetal International and RJK Explorations
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Polymetal and RJK is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Polymetal International PLC and RJK Explorations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RJK Explorations 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 RJK Explorations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RJK Explorations has no effect on the direction of Polymetal International i.e., Polymetal International and RJK Explorations go up and down completely randomly.
Pair Corralation between Polymetal International and RJK Explorations
If you would invest 6.50 in RJK Explorations on September 1, 2024 and sell it today you would lose (1.50) from holding RJK Explorations or give up 23.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Polymetal International PLC vs. RJK Explorations
Performance |
| Timeline |
| Polymetal International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| RJK Explorations |
Polymetal International and RJK Explorations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polymetal International and RJK Explorations
The main advantage of trading using opposite Polymetal International and RJK Explorations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polymetal International position performs unexpectedly, RJK Explorations 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 RJK Explorations will offset losses from the drop in RJK Explorations' long position.| Polymetal International vs. Fresnillo PLC | Polymetal International vs. Summa Silver Corp | Polymetal International vs. GoGold Resources | Polymetal International vs. Scottie Resources Corp |
| RJK Explorations vs. Haverty Furniture Companies | RJK Explorations vs. KNOT Offshore Partners | RJK Explorations vs. Franklin Street Properties | RJK Explorations vs. Boot Barn Holdings |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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