Correlation Between Platinum Asia and Navigator Global
Can any of the company-specific risk be diversified away by investing in both Platinum Asia and Navigator Global 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 Navigator Global 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 Navigator Global Investments, you can compare the effects of market volatilities on Platinum Asia and Navigator Global 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 Navigator Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asia and Navigator Global.
Diversification Opportunities for Platinum Asia and Navigator Global
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Platinum and Navigator is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asia Investments and Navigator Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navigator Global Inv 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 Navigator Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navigator Global Inv has no effect on the direction of Platinum Asia i.e., Platinum Asia and Navigator Global go up and down completely randomly.
Pair Corralation between Platinum Asia and Navigator Global
Assuming the 90 days trading horizon Platinum Asia Investments is expected to under-perform the Navigator Global. But the stock apears to be less risky and, when comparing its historical volatility, Platinum Asia Investments is 1.72 times less risky than Navigator Global. The stock trades about -0.22 of its potential returns per unit of risk. The Navigator Global Investments is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 172.00 in Navigator Global Investments on September 1, 2024 and sell it today you would lose (3.00) from holding Navigator Global Investments or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Asia Investments vs. Navigator Global Investments
Performance |
| Timeline |
| Platinum Asia Investments |
| Navigator Global Inv |
Platinum Asia and Navigator Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Asia and Navigator Global
The main advantage of trading using opposite Platinum Asia and Navigator Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asia position performs unexpectedly, Navigator Global 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 Navigator Global will offset losses from the drop in Navigator Global's 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 |
| Navigator Global vs. A1 Investments Resources | Navigator Global vs. K2 Asset Management | Navigator Global vs. MFF Capital Investments | Navigator Global vs. Ainsworth Game Technology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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