Correlation Between Platinum Asia and Sports Entertainment
Can any of the company-specific risk be diversified away by investing in both Platinum Asia and Sports Entertainment 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 Sports Entertainment 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 Sports Entertainment Group, you can compare the effects of market volatilities on Platinum Asia and Sports Entertainment 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 Sports Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asia and Sports Entertainment.
Diversification Opportunities for Platinum Asia and Sports Entertainment
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Platinum and Sports is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asia Investments and Sports Entertainment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sports Entertainment 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 Sports Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sports Entertainment has no effect on the direction of Platinum Asia i.e., Platinum Asia and Sports Entertainment go up and down completely randomly.
Pair Corralation between Platinum Asia and Sports Entertainment
Assuming the 90 days trading horizon Platinum Asia Investments is expected to generate 0.23 times more return on investment than Sports Entertainment. However, Platinum Asia Investments is 4.32 times less risky than Sports Entertainment. It trades about 0.09 of its potential returns per unit of risk. Sports Entertainment Group is currently generating about -0.06 per unit of risk. If you would invest 93.00 in Platinum Asia Investments on October 18, 2024 and sell it today you would earn a total of 8.00 from holding Platinum Asia Investments or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Asia Investments vs. Sports Entertainment Group
Performance |
| Timeline |
| Platinum Asia Investments |
| Sports Entertainment |
Platinum Asia and Sports Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Asia and Sports Entertainment
The main advantage of trading using opposite Platinum Asia and Sports Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asia position performs unexpectedly, Sports Entertainment 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 Sports Entertainment will offset losses from the drop in Sports Entertainment's long position.| Platinum Asia vs. Firstwave Cloud Technology | Platinum Asia vs. Ras Technology Holdings | Platinum Asia vs. Spirit Telecom | Platinum Asia vs. Falcon Metals |
| Sports Entertainment vs. Nine Entertainment Co | Sports Entertainment vs. Auctus Alternative Investments | Sports Entertainment vs. Garda Diversified Ppty | Sports Entertainment vs. Platinum Asia Investments |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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