Correlation Between Carlton Investments and Platinum Asset
Can any of the company-specific risk be diversified away by investing in both Carlton Investments and Platinum Asset 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 Carlton Investments and Platinum Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlton Investments and Platinum Asset Management, you can compare the effects of market volatilities on Carlton Investments and Platinum Asset 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 Carlton Investments with a short position of Platinum Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlton Investments and Platinum Asset.
Diversification Opportunities for Carlton Investments and Platinum Asset
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carlton and Platinum is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Carlton Investments and Platinum Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asset Management and Carlton Investments 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 Carlton Investments are associated (or correlated) with Platinum Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asset Management has no effect on the direction of Carlton Investments i.e., Carlton Investments and Platinum Asset go up and down completely randomly.
Pair Corralation between Carlton Investments and Platinum Asset
Assuming the 90 days trading horizon Carlton Investments is expected to generate 0.35 times more return on investment than Platinum Asset. However, Carlton Investments is 2.9 times less risky than Platinum Asset. It trades about 0.02 of its potential returns per unit of risk. Platinum Asset Management is currently generating about -0.02 per unit of risk. If you would invest 2,815 in Carlton Investments on August 28, 2024 and sell it today you would earn a total of 235.00 from holding Carlton Investments or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlton Investments vs. Platinum Asset Management
Performance |
| Timeline |
| Carlton Investments |
| Platinum Asset Management |
Carlton Investments and Platinum Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlton Investments and Platinum Asset
The main advantage of trading using opposite Carlton Investments and Platinum Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlton Investments position performs unexpectedly, Platinum Asset 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 Asset will offset losses from the drop in Platinum Asset's long position.| Carlton Investments vs. Australian Foundation Investment | Carlton Investments vs. GQG Partners DRC | Carlton Investments vs. Metrics Master Income | Carlton Investments vs. L1 Long Short |
| Platinum Asset vs. National Australia Bank | Platinum Asset vs. National Australia Bank | Platinum Asset vs. Westpac Banking | Platinum Asset vs. National Australia Bank |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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