Correlation Between Platinum Asia and FleetPartners
Can any of the company-specific risk be diversified away by investing in both Platinum Asia and FleetPartners 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 FleetPartners 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 FleetPartners Group, you can compare the effects of market volatilities on Platinum Asia and FleetPartners 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 FleetPartners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asia and FleetPartners.
Diversification Opportunities for Platinum Asia and FleetPartners
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Platinum and FleetPartners is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asia Investments and FleetPartners Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FleetPartners Group 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 FleetPartners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FleetPartners Group has no effect on the direction of Platinum Asia i.e., Platinum Asia and FleetPartners go up and down completely randomly.
Pair Corralation between Platinum Asia and FleetPartners
Assuming the 90 days trading horizon Platinum Asia is expected to generate 2.32 times less return on investment than FleetPartners. But when comparing it to its historical volatility, Platinum Asia Investments is 1.43 times less risky than FleetPartners. It trades about 0.04 of its potential returns per unit of risk. FleetPartners Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 196.00 in FleetPartners Group on September 3, 2024 and sell it today you would earn a total of 121.00 from holding FleetPartners Group or generate 61.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Asia Investments vs. FleetPartners Group
Performance |
| Timeline |
| Platinum Asia Investments |
| FleetPartners Group |
Platinum Asia and FleetPartners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Asia and FleetPartners
The main advantage of trading using opposite Platinum Asia and FleetPartners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asia position performs unexpectedly, FleetPartners 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 FleetPartners will offset losses from the drop in FleetPartners' long position.| Platinum Asia vs. Audio Pixels Holdings | Platinum Asia vs. Iodm | Platinum Asia vs. Nsx | Platinum Asia vs. TTG Fintech |
| FleetPartners vs. Carlton Investments | FleetPartners vs. Australian United Investment | FleetPartners vs. Macquarie Technology Group | FleetPartners vs. Regal Investment |
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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