Correlation Between SPASX Dividend and Platinum Asia
Can any of the company-specific risk be diversified away by investing in both SPASX Dividend and Platinum Asia 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 SPASX Dividend and Platinum Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPASX Dividend Opportunities and Platinum Asia Investments, you can compare the effects of market volatilities on SPASX Dividend and Platinum Asia 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 SPASX Dividend with a short position of Platinum Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPASX Dividend and Platinum Asia.
Diversification Opportunities for SPASX Dividend and Platinum Asia
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPASX and Platinum is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding SPASX Dividend Opportunities and Platinum Asia Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asia Investments and SPASX Dividend 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 SPASX Dividend Opportunities are associated (or correlated) with Platinum Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asia Investments has no effect on the direction of SPASX Dividend i.e., SPASX Dividend and Platinum Asia go up and down completely randomly.
Pair Corralation between SPASX Dividend and Platinum Asia
Assuming the 90 days trading horizon SPASX Dividend Opportunities is expected to generate 0.52 times more return on investment than Platinum Asia. However, SPASX Dividend Opportunities is 1.93 times less risky than Platinum Asia. It trades about 0.05 of its potential returns per unit of risk. Platinum Asia Investments is currently generating about -0.31 per unit of risk. If you would invest 167,020 in SPASX Dividend Opportunities on August 29, 2024 and sell it today you would earn a total of 1,100 from holding SPASX Dividend Opportunities or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPASX Dividend Opportunities vs. Platinum Asia Investments
Performance |
| Timeline |
SPASX Dividend and Platinum Asia Volatility Contrast
Predicted Return Density |
| Returns |
SPASX Dividend Opportunities
Pair trading matchups for SPASX Dividend
Platinum Asia Investments
Pair trading matchups for Platinum Asia
Pair Trading with SPASX Dividend and Platinum Asia
The main advantage of trading using opposite SPASX Dividend and Platinum Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPASX Dividend position performs unexpectedly, Platinum Asia 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 Asia will offset losses from the drop in Platinum Asia's long position.| SPASX Dividend vs. Red Hill Iron | SPASX Dividend vs. Ainsworth Game Technology | SPASX Dividend vs. Champion Iron | SPASX Dividend vs. Autosports Group |
| Platinum Asia vs. Stelar Metals | Platinum Asia vs. Centaurus Metals | Platinum Asia vs. Perseus Mining | Platinum Asia vs. Regal Funds Management |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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