Correlation Between Munivest Fund and Platinum Asia
Can any of the company-specific risk be diversified away by investing in both Munivest Fund 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 Munivest Fund and Platinum Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Munivest Fund and Platinum Asia Investments, you can compare the effects of market volatilities on Munivest Fund 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 Munivest Fund with a short position of Platinum Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Munivest Fund and Platinum Asia.
Diversification Opportunities for Munivest Fund and Platinum Asia
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Munivest and Platinum is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Munivest Fund 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 Munivest Fund 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 Munivest Fund 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 Munivest Fund i.e., Munivest Fund and Platinum Asia go up and down completely randomly.
Pair Corralation between Munivest Fund and Platinum Asia
Considering the 90-day investment horizon Munivest Fund is expected to generate 0.97 times more return on investment than Platinum Asia. However, Munivest Fund is 1.03 times less risky than Platinum Asia. It trades about 0.12 of its potential returns per unit of risk. Platinum Asia Investments is currently generating about 0.0 per unit of risk. If you would invest 719.00 in Munivest Fund on August 28, 2024 and sell it today you would earn a total of 13.00 from holding Munivest Fund or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Munivest Fund vs. Platinum Asia Investments
Performance |
| Timeline |
| Munivest Fund |
| Platinum Asia Investments |
Munivest Fund and Platinum Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Munivest Fund and Platinum Asia
The main advantage of trading using opposite Munivest Fund and Platinum Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Munivest Fund 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.| Munivest Fund vs. DTF Tax Free | Munivest Fund vs. MFS High Yield | Munivest Fund vs. MFS High Income | Munivest Fund vs. John Hancock Income |
| Platinum Asia vs. The Gabelli Dividend | Platinum Asia vs. Voya Global Advantage | Platinum Asia vs. Invesco California Value | Platinum Asia vs. John Hancock Investors |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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