Correlation Between Navigator Global and Platinum Asset
Can any of the company-specific risk be diversified away by investing in both Navigator Global and Platinum Asset 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 Asset 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 Asset Management, you can compare the effects of market volatilities on Navigator Global and Platinum Asset 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 Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navigator Global and Platinum Asset.
Diversification Opportunities for Navigator Global and Platinum Asset
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Navigator and Platinum is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Navigator Global Investments and Platinum Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asset Management 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 Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asset Management has no effect on the direction of Navigator Global i.e., Navigator Global and Platinum Asset go up and down completely randomly.
Pair Corralation between Navigator Global and Platinum Asset
Assuming the 90 days trading horizon Navigator Global Investments is expected to generate 1.54 times more return on investment than Platinum Asset. However, Navigator Global is 1.54 times more volatile than Platinum Asset Management. It trades about 0.05 of its potential returns per unit of risk. Platinum Asset Management is currently generating about -0.44 per unit of risk. If you would invest 166.00 in Navigator Global Investments on August 29, 2024 and sell it today you would earn a total of 4.00 from holding Navigator Global Investments or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Navigator Global Investments vs. Platinum Asset Management
Performance |
| Timeline |
| Navigator Global Inv |
| Platinum Asset Management |
Navigator Global and Platinum Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navigator Global and Platinum Asset
The main advantage of trading using opposite Navigator Global and Platinum Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navigator Global position performs unexpectedly, Platinum Asset 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 Asset will offset losses from the drop in Platinum Asset's long position.| Navigator Global vs. ACDC Metals | Navigator Global vs. Flagship Investments | Navigator Global vs. Alternative Investment Trust | Navigator Global vs. Platinum Asset Management |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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