Correlation Between Platinum Group and Genertec Universal
Can any of the company-specific risk be diversified away by investing in both Platinum Group and Genertec Universal 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 Platinum Group and Genertec Universal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Group Metals and Genertec Universal Medical, you can compare the effects of market volatilities on Platinum Group and Genertec Universal 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 Platinum Group with a short position of Genertec Universal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Group and Genertec Universal.
Diversification Opportunities for Platinum Group and Genertec Universal
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Platinum and Genertec is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Group Metals and Genertec Universal Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genertec Universal and Platinum Group 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 Platinum Group Metals are associated (or correlated) with Genertec Universal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genertec Universal has no effect on the direction of Platinum Group i.e., Platinum Group and Genertec Universal go up and down completely randomly.
Pair Corralation between Platinum Group and Genertec Universal
Assuming the 90 days trading horizon Platinum Group Metals is expected to generate 1.51 times more return on investment than Genertec Universal. However, Platinum Group is 1.51 times more volatile than Genertec Universal Medical. It trades about 0.17 of its potential returns per unit of risk. Genertec Universal Medical is currently generating about 0.04 per unit of risk. If you would invest 110.00 in Platinum Group Metals on October 24, 2024 and sell it today you would earn a total of 16.00 from holding Platinum Group Metals or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Group Metals vs. Genertec Universal Medical
Performance |
| Timeline |
| Platinum Group Metals |
| Genertec Universal |
Platinum Group and Genertec Universal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Group and Genertec Universal
The main advantage of trading using opposite Platinum Group and Genertec Universal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Group position performs unexpectedly, Genertec Universal 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 Genertec Universal will offset losses from the drop in Genertec Universal's long position.| Platinum Group vs. Chiba Bank | Platinum Group vs. RCS MediaGroup SpA | Platinum Group vs. Discover Financial Services | Platinum Group vs. PARKEN Sport Entertainment |
| Genertec Universal vs. Evolent Health | Genertec Universal vs. CompuGroup Medical SE | Genertec Universal vs. Compugroup Medical SE | Genertec Universal vs. Superior Plus Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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