Correlation Between NAT ABSOLUTE and Platinum
Can any of the company-specific risk be diversified away by investing in both NAT ABSOLUTE and 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 NAT ABSOLUTE and Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NAT ABSOLUTE TECHNOLOGIES and The Platinum Group, you can compare the effects of market volatilities on NAT ABSOLUTE and 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 NAT ABSOLUTE with a short position of Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAT ABSOLUTE and Platinum.
Diversification Opportunities for NAT ABSOLUTE and Platinum
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NAT and Platinum is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding NAT ABSOLUTE TECHNOLOGIES and The Platinum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Group and NAT ABSOLUTE 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 NAT ABSOLUTE TECHNOLOGIES are associated (or correlated) with Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Group has no effect on the direction of NAT ABSOLUTE i.e., NAT ABSOLUTE and Platinum go up and down completely randomly.
Pair Corralation between NAT ABSOLUTE and Platinum
Assuming the 90 days trading horizon NAT ABSOLUTE TECHNOLOGIES is expected to under-perform the Platinum. But the stock apears to be less risky and, when comparing its historical volatility, NAT ABSOLUTE TECHNOLOGIES is 1.52 times less risky than Platinum. The stock trades about -0.48 of its potential returns per unit of risk. The The Platinum Group is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 190.00 in The Platinum Group on November 28, 2024 and sell it today you would lose (4.00) from holding The Platinum Group or give up 2.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAT ABSOLUTE TECHNOLOGIES vs. The Platinum Group
Performance |
| Timeline |
| NAT ABSOLUTE TECHNOLOGIES |
| Platinum Group |
NAT ABSOLUTE and Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAT ABSOLUTE and Platinum
The main advantage of trading using opposite NAT ABSOLUTE and Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAT ABSOLUTE position performs unexpectedly, 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 Platinum will offset losses from the drop in Platinum's long position.| NAT ABSOLUTE vs. Ratchthani Leasing Public | NAT ABSOLUTE vs. Absolute Clean Energy | NAT ABSOLUTE vs. PMC LABEL MATERIALS | NAT ABSOLUTE vs. ND Rubber Public |
| Platinum vs. Warrix Sport PCL | Platinum vs. Simat Technologies Public | Platinum vs. BPS TECHNOLOGY PUBLIC | Platinum vs. Somboon Advance Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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