Correlation Between GQG Partners and Platinum Asset
Can any of the company-specific risk be diversified away by investing in both GQG Partners 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 GQG Partners and Platinum Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GQG Partners DRC and Platinum Asset Management, you can compare the effects of market volatilities on GQG Partners 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 GQG Partners with a short position of Platinum Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of GQG Partners and Platinum Asset.
Diversification Opportunities for GQG Partners and Platinum Asset
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GQG and Platinum is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding GQG Partners DRC 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 GQG Partners 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 GQG Partners DRC 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 GQG Partners i.e., GQG Partners and Platinum Asset go up and down completely randomly.
Pair Corralation between GQG Partners and Platinum Asset
Assuming the 90 days trading horizon GQG Partners DRC is expected to generate 1.03 times more return on investment than Platinum Asset. However, GQG Partners is 1.03 times more volatile than Platinum Asset Management. It trades about 0.07 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 130.00 in GQG Partners DRC on September 2, 2024 and sell it today you would earn a total of 105.00 from holding GQG Partners DRC or generate 80.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GQG Partners DRC vs. Platinum Asset Management
Performance |
| Timeline |
| GQG Partners DRC |
| Platinum Asset Management |
GQG Partners and Platinum Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GQG Partners and Platinum Asset
The main advantage of trading using opposite GQG Partners and Platinum Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GQG Partners 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.| GQG Partners vs. Bisalloy Steel Group | GQG Partners vs. Singular Health Group | GQG Partners vs. Vulcan Steel | GQG Partners vs. Legacy Iron Ore |
| Platinum Asset vs. WA1 Resources | Platinum Asset vs. Predictive Discovery | Platinum Asset vs. Cooper Metals | Platinum Asset vs. OD6 Metals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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