Correlation Between Impala Platinum and Sylvania Platinum
Can any of the company-specific risk be diversified away by investing in both Impala Platinum and Sylvania 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 Sylvania 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 Sylvania Platinum Limited, you can compare the effects of market volatilities on Impala Platinum and Sylvania 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 Sylvania Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impala Platinum and Sylvania Platinum.
Diversification Opportunities for Impala Platinum and Sylvania Platinum
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Impala and Sylvania is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Impala Platinum Holdings and Sylvania Platinum Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sylvania Platinum 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 Sylvania Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sylvania Platinum has no effect on the direction of Impala Platinum i.e., Impala Platinum and Sylvania Platinum go up and down completely randomly.
Pair Corralation between Impala Platinum and Sylvania Platinum
Assuming the 90 days horizon Impala Platinum Holdings is expected to under-perform the Sylvania Platinum. But the otc stock apears to be less risky and, when comparing its historical volatility, Impala Platinum Holdings is 1.64 times less risky than Sylvania Platinum. The otc stock trades about -0.03 of its potential returns per unit of risk. The Sylvania Platinum Limited is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 117.00 in Sylvania Platinum Limited on August 31, 2024 and sell it today you would lose (60.00) from holding Sylvania Platinum Limited or give up 51.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 73.58% |
| Values | Daily Returns |
Impala Platinum Holdings vs. Sylvania Platinum Limited
Performance |
| Timeline |
| Impala Platinum Holdings |
| Sylvania Platinum |
Impala Platinum and Sylvania Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impala Platinum and Sylvania Platinum
The main advantage of trading using opposite Impala Platinum and Sylvania Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impala Platinum position performs unexpectedly, Sylvania 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 Sylvania Platinum will offset losses from the drop in Sylvania Platinum'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 |
| Sylvania Platinum vs. Clifton Mining Co | Sylvania Platinum vs. Cartier Iron Corp | Sylvania Platinum vs. Alien Metals | Sylvania Platinum vs. Mantaro Silver Corp |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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