Correlation Between Impala Platinum and CoreShares TotalWldStock
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By analyzing existing cross correlation between Impala Platinum Holdings and CoreShares TotalWldStock ETF, you can compare the effects of market volatilities on Impala Platinum and CoreShares TotalWldStock 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 Impala Platinum with a short position of CoreShares TotalWldStock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impala Platinum and CoreShares TotalWldStock.
Diversification Opportunities for Impala Platinum and CoreShares TotalWldStock
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Impala and CoreShares is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Impala Platinum Holdings and CoreShares TotalWldStock ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoreShares TotalWldStock and Impala Platinum 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 Impala Platinum Holdings are associated (or correlated) with CoreShares TotalWldStock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoreShares TotalWldStock has no effect on the direction of Impala Platinum i.e., Impala Platinum and CoreShares TotalWldStock go up and down completely randomly.
Pair Corralation between Impala Platinum and CoreShares TotalWldStock
Assuming the 90 days trading horizon Impala Platinum Holdings is expected to under-perform the CoreShares TotalWldStock. In addition to that, Impala Platinum is 4.41 times more volatile than CoreShares TotalWldStock ETF. It trades about -0.01 of its total potential returns per unit of risk. CoreShares TotalWldStock ETF is currently generating about 0.07 per unit of volatility. If you would invest 128,400 in CoreShares TotalWldStock ETF on August 31, 2024 and sell it today you would earn a total of 29,200 from holding CoreShares TotalWldStock ETF or generate 22.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impala Platinum Holdings vs. CoreShares TotalWldStock ETF
Performance |
| Timeline |
| Impala Platinum Holdings |
| CoreShares TotalWldStock |
Impala Platinum and CoreShares TotalWldStock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impala Platinum and CoreShares TotalWldStock
The main advantage of trading using opposite Impala Platinum and CoreShares TotalWldStock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impala Platinum position performs unexpectedly, CoreShares TotalWldStock 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 CoreShares TotalWldStock will offset losses from the drop in CoreShares TotalWldStock's long position.| Impala Platinum vs. Anglo American Platinum | Impala Platinum vs. Tharisa plc | Impala Platinum vs. Gemfields Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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