Correlation Between Impala Platinum and Impala Platinum
Can any of the company-specific risk be diversified away by investing in both Impala Platinum and Impala Platinum 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 Impala Platinum and Impala Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impala Platinum Holdings and Impala Platinum Holdings, you can compare the effects of market volatilities on Impala Platinum and Impala Platinum 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 Impala Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impala Platinum and Impala Platinum.
Diversification Opportunities for Impala Platinum and Impala Platinum
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Impala and Impala is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Impala Platinum Holdings and Impala Platinum Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impala Platinum Holdings 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 Impala Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impala Platinum Holdings has no effect on the direction of Impala Platinum i.e., Impala Platinum and Impala Platinum go up and down completely randomly.
Pair Corralation between Impala Platinum and Impala Platinum
Assuming the 90 days horizon Impala Platinum Holdings is expected to generate 0.71 times more return on investment than Impala Platinum. However, Impala Platinum Holdings is 1.41 times less risky than Impala Platinum. It trades about -0.12 of its potential returns per unit of risk. Impala Platinum Holdings is currently generating about -0.23 per unit of risk. If you would invest 636.00 in Impala Platinum Holdings on August 30, 2024 and sell it today you would lose (46.00) from holding Impala Platinum Holdings or give up 7.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impala Platinum Holdings vs. Impala Platinum Holdings
Performance |
| Timeline |
| Impala Platinum Holdings |
| Impala Platinum Holdings |
Impala Platinum and Impala Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impala Platinum and Impala Platinum
The main advantage of trading using opposite Impala Platinum and Impala Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impala Platinum position performs unexpectedly, Impala Platinum 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 Impala Platinum will offset losses from the drop in Impala Platinum's long position.| Impala Platinum vs. Impala Platinum Holdings | Impala Platinum vs. Anglo American Platinum | Impala Platinum vs. Platinum Group Metals | Impala Platinum vs. AbraSilver Resource Corp |
| Impala Platinum vs. Anglo American Platinum | Impala Platinum vs. Sibanye Gold Ltd | Impala Platinum vs. Anglo American PLC | Impala Platinum vs. Fortescue Metals 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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