Correlation Between Platinum Asia and Carlton Investments
Can any of the company-specific risk be diversified away by investing in both Platinum Asia and Carlton Investments 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 Carlton Investments 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 Carlton Investments, you can compare the effects of market volatilities on Platinum Asia and Carlton Investments 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 Carlton Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asia and Carlton Investments.
Diversification Opportunities for Platinum Asia and Carlton Investments
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Platinum and Carlton is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asia Investments and Carlton Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlton Investments 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 Carlton Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlton Investments has no effect on the direction of Platinum Asia i.e., Platinum Asia and Carlton Investments go up and down completely randomly.
Pair Corralation between Platinum Asia and Carlton Investments
Assuming the 90 days trading horizon Platinum Asia Investments is expected to under-perform the Carlton Investments. In addition to that, Platinum Asia is 1.43 times more volatile than Carlton Investments. It trades about -0.22 of its total potential returns per unit of risk. Carlton Investments is currently generating about 0.11 per unit of volatility. If you would invest 3,000 in Carlton Investments on September 1, 2024 and sell it today you would earn a total of 70.00 from holding Carlton Investments or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Asia Investments vs. Carlton Investments
Performance |
| Timeline |
| Platinum Asia Investments |
| Carlton Investments |
Platinum Asia and Carlton Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Asia and Carlton Investments
The main advantage of trading using opposite Platinum Asia and Carlton Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asia position performs unexpectedly, Carlton Investments 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 Carlton Investments will offset losses from the drop in Carlton Investments' long position.| Platinum Asia vs. Navigator Global Investments | Platinum Asia vs. Diversified United Investment | Platinum Asia vs. Garda Diversified Ppty | Platinum Asia vs. Argo Investments |
| Carlton Investments vs. GQG Partners DRC | Carlton Investments vs. MFF Capital Investments | Carlton Investments vs. Metrics Master Income | Carlton Investments vs. L1 Long Short |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |