Correlation Between Impala Platinum and Max Resource
Can any of the company-specific risk be diversified away by investing in both Impala Platinum and Max 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 Max 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 Max Resource Corp, you can compare the effects of market volatilities on Impala Platinum and Max 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 Max Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impala Platinum and Max Resource.
Diversification Opportunities for Impala Platinum and Max Resource
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Impala and Max is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Impala Platinum Holdings and Max Resource Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Max 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 Max Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Max Resource Corp has no effect on the direction of Impala Platinum i.e., Impala Platinum and Max Resource go up and down completely randomly.
Pair Corralation between Impala Platinum and Max Resource
Assuming the 90 days horizon Impala Platinum Holdings is expected to generate 0.31 times more return on investment than Max Resource. However, Impala Platinum Holdings is 3.2 times less risky than Max Resource. It trades about 0.05 of its potential returns per unit of risk. Max Resource Corp is currently generating about -0.01 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impala Platinum Holdings vs. Max Resource Corp
Performance |
| Timeline |
| Impala Platinum Holdings |
| Max Resource Corp |
Impala Platinum and Max Resource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impala Platinum and Max Resource
The main advantage of trading using opposite Impala Platinum and Max Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impala Platinum position performs unexpectedly, Max 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 Max Resource will offset losses from the drop in Max 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 |
| Max Resource vs. Defiance Silver Corp | Max Resource vs. HUMANA INC | Max Resource vs. SCOR PK | Max 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |