Correlation Between Platinum Asia and Apiam Animal
Can any of the company-specific risk be diversified away by investing in both Platinum Asia and Apiam Animal 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 Asia and Apiam Animal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Asia Investments and Apiam Animal Health, you can compare the effects of market volatilities on Platinum Asia and Apiam Animal 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 Asia with a short position of Apiam Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asia and Apiam Animal.
Diversification Opportunities for Platinum Asia and Apiam Animal
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Platinum and Apiam is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asia Investments and Apiam Animal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apiam Animal Health and Platinum Asia 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 Asia Investments are associated (or correlated) with Apiam Animal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apiam Animal Health has no effect on the direction of Platinum Asia i.e., Platinum Asia and Apiam Animal go up and down completely randomly.
Pair Corralation between Platinum Asia and Apiam Animal
Assuming the 90 days trading horizon Platinum Asia Investments is expected to generate 0.3 times more return on investment than Apiam Animal. However, Platinum Asia Investments is 3.37 times less risky than Apiam Animal. It trades about 0.05 of its potential returns per unit of risk. Apiam Animal Health is currently generating about 0.01 per unit of risk. If you would invest 84.00 in Platinum Asia Investments on November 27, 2024 and sell it today you would earn a total of 24.00 from holding Platinum Asia Investments or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Asia Investments vs. Apiam Animal Health
Performance |
| Timeline |
| Platinum Asia Investments |
| Apiam Animal Health |
Platinum Asia and Apiam Animal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Asia and Apiam Animal
The main advantage of trading using opposite Platinum Asia and Apiam Animal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asia position performs unexpectedly, Apiam Animal 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 Apiam Animal will offset losses from the drop in Apiam Animal's long position.| Platinum Asia vs. Super Retail Group | Platinum Asia vs. Genetic Technologies | Platinum Asia vs. Dug Technology | Platinum Asia vs. Neurotech International |
| Apiam Animal vs. Aneka Tambang Tbk | Apiam Animal vs. Commonwealth Bank | Apiam Animal vs. Commonwealth Bank of | Apiam Animal vs. Australia and New |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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