Correlation Between Impala Platinum and AbraSilver Resource
Can any of the company-specific risk be diversified away by investing in both Impala Platinum and AbraSilver Resource 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 AbraSilver Resource 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 AbraSilver Resource Corp, you can compare the effects of market volatilities on Impala Platinum and AbraSilver Resource 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 AbraSilver Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impala Platinum and AbraSilver Resource.
Diversification Opportunities for Impala Platinum and AbraSilver Resource
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Impala and AbraSilver is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Impala Platinum Holdings and AbraSilver Resource Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AbraSilver Resource Corp 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 AbraSilver Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AbraSilver Resource Corp has no effect on the direction of Impala Platinum i.e., Impala Platinum and AbraSilver Resource go up and down completely randomly.
Pair Corralation between Impala Platinum and AbraSilver Resource
Assuming the 90 days horizon Impala Platinum Holdings is expected to generate 1.0 times more return on investment than AbraSilver Resource. However, Impala Platinum is 1.0 times more volatile than AbraSilver Resource Corp. It trades about 0.05 of its potential returns per unit of risk. AbraSilver Resource Corp is currently generating about 0.05 per unit of risk. If you would invest 508.00 in Impala Platinum Holdings on September 1, 2024 and sell it today you would earn a total of 79.00 from holding Impala Platinum Holdings or generate 15.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impala Platinum Holdings vs. AbraSilver Resource Corp
Performance |
| Timeline |
| Impala Platinum Holdings |
| AbraSilver Resource Corp |
Impala Platinum and AbraSilver Resource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impala Platinum and AbraSilver Resource
The main advantage of trading using opposite Impala Platinum and AbraSilver Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impala Platinum position performs unexpectedly, AbraSilver Resource 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 AbraSilver Resource will offset losses from the drop in AbraSilver Resource's long position.| Impala Platinum vs. Anglo American Platinum | Impala Platinum vs. Sibanye Gold Ltd | Impala Platinum vs. Anglo American PLC | Impala Platinum vs. Fortescue Metals Group |
| AbraSilver Resource vs. Defiance Silver Corp | AbraSilver Resource vs. HUMANA INC | AbraSilver Resource vs. SCOR PK | AbraSilver Resource vs. Aquagold International |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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