Correlation Between FSA and Platinum Asset
Can any of the company-specific risk be diversified away by investing in both FSA 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 FSA and Platinum Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FSA Group and Platinum Asset Management, you can compare the effects of market volatilities on FSA 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 FSA with a short position of Platinum Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSA and Platinum Asset.
Diversification Opportunities for FSA and Platinum Asset
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FSA and Platinum is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding FSA Group 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 FSA 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 FSA Group 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 FSA i.e., FSA and Platinum Asset go up and down completely randomly.
Pair Corralation between FSA and Platinum Asset
Assuming the 90 days trading horizon FSA Group is expected to generate 0.8 times more return on investment than Platinum Asset. However, FSA Group is 1.24 times less risky than Platinum Asset. It trades about -0.13 of its potential returns per unit of risk. Platinum Asset Management is currently generating about -0.46 per unit of risk. If you would invest 84.00 in FSA Group on August 27, 2024 and sell it today you would lose (3.00) from holding FSA Group or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FSA Group vs. Platinum Asset Management
Performance |
| Timeline |
| FSA Group |
| Platinum Asset Management |
FSA and Platinum Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FSA and Platinum Asset
The main advantage of trading using opposite FSA and Platinum Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSA 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.| FSA vs. Dicker Data | FSA vs. Diversified United Investment | FSA vs. Iron Road | FSA vs. Auctus Alternative Investments |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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