Correlation Between Navigator Global and Platinum Asia
Can any of the company-specific risk be diversified away by investing in both Navigator Global 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 Navigator Global and Platinum Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Navigator Global Investments and Platinum Asia Investments, you can compare the effects of market volatilities on Navigator Global 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 Navigator Global with a short position of Platinum Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navigator Global and Platinum Asia.
Diversification Opportunities for Navigator Global and Platinum Asia
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Navigator and Platinum is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Navigator Global Investments 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 Navigator Global 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 Navigator Global Investments 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 Navigator Global i.e., Navigator Global and Platinum Asia go up and down completely randomly.
Pair Corralation between Navigator Global and Platinum Asia
Assuming the 90 days trading horizon Navigator Global Investments is expected to generate 1.97 times more return on investment than Platinum Asia. However, Navigator Global is 1.97 times more volatile than Platinum Asia Investments. It trades about 0.05 of its potential returns per unit of risk. Platinum Asia Investments is currently generating about 0.04 per unit of risk. If you would invest 102.00 in Navigator Global Investments on September 3, 2024 and sell it today you would earn a total of 67.00 from holding Navigator Global Investments or generate 65.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Navigator Global Investments vs. Platinum Asia Investments
Performance |
| Timeline |
| Navigator Global Inv |
| Platinum Asia Investments |
Navigator Global and Platinum Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navigator Global and Platinum Asia
The main advantage of trading using opposite Navigator Global and Platinum Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navigator Global 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.| Navigator Global vs. Audio Pixels Holdings | Navigator Global vs. Iodm | Navigator Global vs. Nsx | Navigator Global vs. TTG Fintech |
| Platinum Asia vs. Audio Pixels Holdings | Platinum Asia vs. Iodm | Platinum Asia vs. Nsx | Platinum Asia vs. TTG Fintech |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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