Correlation Between Inventis and Platinum Asia
Can any of the company-specific risk be diversified away by investing in both Inventis and Platinum Asia 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 Inventis and Platinum Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventis and Platinum Asia Investments, you can compare the effects of market volatilities on Inventis and Platinum Asia 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 Inventis with a short position of Platinum Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventis and Platinum Asia.
Diversification Opportunities for Inventis and Platinum Asia
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inventis and Platinum is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Inventis and Platinum Asia Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asia Investments and Inventis 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 Inventis are associated (or correlated) with Platinum Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asia Investments has no effect on the direction of Inventis i.e., Inventis and Platinum Asia go up and down completely randomly.
Pair Corralation between Inventis and Platinum Asia
Assuming the 90 days trading horizon Inventis is expected to generate 1.84 times more return on investment than Platinum Asia. However, Inventis is 1.84 times more volatile than Platinum Asia Investments. It trades about 0.01 of its potential returns per unit of risk. Platinum Asia Investments is currently generating about -0.31 per unit of risk. If you would invest 2.50 in Inventis on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Inventis or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inventis vs. Platinum Asia Investments
Performance |
| Timeline |
| Inventis |
| Platinum Asia Investments |
Inventis and Platinum Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventis and Platinum Asia
The main advantage of trading using opposite Inventis and Platinum Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventis position performs unexpectedly, Platinum Asia 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 Platinum Asia will offset losses from the drop in Platinum Asia's long position.| Inventis vs. Infomedia | Inventis vs. Advanced Braking Technology | Inventis vs. Kneomedia | Inventis vs. Legacy Iron Ore |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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