Correlation Between My Foodie and Platinum Asia
Can any of the company-specific risk be diversified away by investing in both My Foodie 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 My Foodie and Platinum Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between My Foodie Box and Platinum Asia Investments, you can compare the effects of market volatilities on My Foodie 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 My Foodie with a short position of Platinum Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of My Foodie and Platinum Asia.
Diversification Opportunities for My Foodie and Platinum Asia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MBX and Platinum is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding My Foodie Box 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 My Foodie 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 My Foodie Box 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 My Foodie i.e., My Foodie and Platinum Asia go up and down completely randomly.
Pair Corralation between My Foodie and Platinum Asia
Assuming the 90 days trading horizon My Foodie Box is expected to under-perform the Platinum Asia. In addition to that, My Foodie is 2.82 times more volatile than Platinum Asia Investments. It trades about -0.05 of its total potential returns per unit of risk. Platinum Asia Investments is currently generating about 0.05 per unit of volatility. If you would invest 81.00 in Platinum Asia Investments on September 2, 2024 and sell it today you would earn a total of 17.00 from holding Platinum Asia Investments or generate 20.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
My Foodie Box vs. Platinum Asia Investments
Performance |
| Timeline |
| My Foodie Box |
| Platinum Asia Investments |
My Foodie and Platinum Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with My Foodie and Platinum Asia
The main advantage of trading using opposite My Foodie and Platinum Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if My Foodie 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.| My Foodie vs. Aneka Tambang Tbk | My Foodie vs. Commonwealth Bank of | My Foodie vs. Australia and New | My Foodie vs. ANZ Group Holdings |
| Platinum Asia vs. WA1 Resources | Platinum Asia vs. Predictive Discovery | Platinum Asia vs. Cooper Metals | Platinum Asia vs. OD6 Metals |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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