Correlation Between Coor Service and Platinum Investment
Can any of the company-specific risk be diversified away by investing in both Coor Service 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 Coor Service and Platinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coor Service Management and Platinum Investment Management, you can compare the effects of market volatilities on Coor Service 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 Coor Service with a short position of Platinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coor Service and Platinum Investment.
Diversification Opportunities for Coor Service and Platinum Investment
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Coor and Platinum is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Coor Service Management and Platinum Investment Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Investment and Coor Service 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 Coor Service Management 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 Coor Service i.e., Coor Service and Platinum Investment go up and down completely randomly.
Pair Corralation between Coor Service and Platinum Investment
Assuming the 90 days horizon Coor Service Management is expected to generate 3.03 times more return on investment than Platinum Investment. However, Coor Service is 3.03 times more volatile than Platinum Investment Management. It trades about 0.04 of its potential returns per unit of risk. Platinum Investment Management is currently generating about -0.01 per unit of risk. If you would invest 159.00 in Coor Service Management on September 1, 2024 and sell it today you would earn a total of 121.00 from holding Coor Service Management or generate 76.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coor Service Management vs. Platinum Investment Management
Performance |
| Timeline |
| Coor Service Management |
| Platinum Investment |
Coor Service and Platinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coor Service and Platinum Investment
The main advantage of trading using opposite Coor Service and Platinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coor Service 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.| Coor Service vs. Automatic Data Processing | Coor Service vs. Superior Plus Corp | Coor Service vs. NMI Holdings | Coor Service vs. Origin Agritech |
| Platinum Investment vs. Ameriprise Financial | Platinum Investment vs. Ares Management Corp | Platinum Investment vs. Superior Plus Corp | Platinum Investment vs. NMI 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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