Correlation Between Platinum Asia and Ironbark Capital
Can any of the company-specific risk be diversified away by investing in both Platinum Asia and Ironbark Capital 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 Ironbark Capital 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 Ironbark Capital, you can compare the effects of market volatilities on Platinum Asia and Ironbark Capital 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 Ironbark Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asia and Ironbark Capital.
Diversification Opportunities for Platinum Asia and Ironbark Capital
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Platinum and Ironbark is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asia Investments and Ironbark Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ironbark Capital 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 Ironbark Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ironbark Capital has no effect on the direction of Platinum Asia i.e., Platinum Asia and Ironbark Capital go up and down completely randomly.
Pair Corralation between Platinum Asia and Ironbark Capital
Assuming the 90 days trading horizon Platinum Asia Investments is expected to generate 1.02 times more return on investment than Ironbark Capital. However, Platinum Asia is 1.02 times more volatile than Ironbark Capital. It trades about 0.05 of its potential returns per unit of risk. Ironbark Capital is currently generating about 0.05 per unit of risk. If you would invest 91.00 in Platinum Asia Investments on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Platinum Asia Investments or generate 7.69% 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. Ironbark Capital
Performance |
| Timeline |
| Platinum Asia Investments |
| Ironbark Capital |
Platinum Asia and Ironbark Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Asia and Ironbark Capital
The main advantage of trading using opposite Platinum Asia and Ironbark Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asia position performs unexpectedly, Ironbark Capital 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 Ironbark Capital will offset losses from the drop in Ironbark Capital's long position.| Platinum Asia vs. Audio Pixels Holdings | Platinum Asia vs. Iodm | Platinum Asia vs. Nsx | Platinum Asia vs. TTG Fintech |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |