Correlation Between AEON STORES and Platinum Investment
Can any of the company-specific risk be diversified away by investing in both AEON STORES and Platinum Investment 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 AEON STORES and Platinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON STORES and Platinum Investment Management, you can compare the effects of market volatilities on AEON STORES and Platinum Investment 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 AEON STORES with a short position of Platinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON STORES and Platinum Investment.
Diversification Opportunities for AEON STORES and Platinum Investment
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AEON and Platinum is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding AEON STORES and Platinum Investment Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Investment and AEON STORES 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 AEON STORES are associated (or correlated) with Platinum Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Investment has no effect on the direction of AEON STORES i.e., AEON STORES and Platinum Investment go up and down completely randomly.
Pair Corralation between AEON STORES and Platinum Investment
If you would invest 43.00 in Platinum Investment Management on November 27, 2024 and sell it today you would earn a total of 1.00 from holding Platinum Investment Management or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEON STORES vs. Platinum Investment Management
Performance |
| Timeline |
| AEON STORES |
| Platinum Investment |
AEON STORES and Platinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON STORES and Platinum Investment
The main advantage of trading using opposite AEON STORES and Platinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON STORES position performs unexpectedly, Platinum Investment 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 Investment will offset losses from the drop in Platinum Investment's long position.| AEON STORES vs. X FAB Silicon Foundries | AEON STORES vs. VIENNA INSURANCE GR | AEON STORES vs. Soken Chemical Engineering | AEON STORES vs. Sumitomo Chemical |
| Platinum Investment vs. TITAN MACHINERY | Platinum Investment vs. Endeavour Mining PLC | Platinum Investment vs. GALENA MINING LTD | Platinum Investment vs. Tokyu Construction Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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