Correlation Between Platinum Asia and Eagle Capital
Can any of the company-specific risk be diversified away by investing in both Platinum Asia and Eagle 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 Eagle 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 Eagle Capital Growth, you can compare the effects of market volatilities on Platinum Asia and Eagle 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 Eagle Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asia and Eagle Capital.
Diversification Opportunities for Platinum Asia and Eagle Capital
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Platinum and Eagle is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asia Investments and Eagle Capital Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Capital Growth 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 Eagle Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Capital Growth has no effect on the direction of Platinum Asia i.e., Platinum Asia and Eagle Capital go up and down completely randomly.
Pair Corralation between Platinum Asia and Eagle Capital
Considering the 90-day investment horizon Platinum Asia is expected to generate 52.35 times less return on investment than Eagle Capital. But when comparing it to its historical volatility, Platinum Asia Investments is 1.97 times less risky than Eagle Capital. It trades about 0.01 of its potential returns per unit of risk. Eagle Capital Growth is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 980.00 in Eagle Capital Growth on August 24, 2024 and sell it today you would earn a total of 70.00 from holding Eagle Capital Growth or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Platinum Asia Investments vs. Eagle Capital Growth
Performance |
| Timeline |
| Platinum Asia Investments |
| Eagle Capital Growth |
Platinum Asia and Eagle Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Asia and Eagle Capital
The main advantage of trading using opposite Platinum Asia and Eagle Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asia position performs unexpectedly, Eagle 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 Eagle Capital will offset losses from the drop in Eagle Capital's long position.| Platinum Asia vs. MFS Investment Grade | Platinum Asia vs. Eaton Vance National | Platinum Asia vs. Blackrock Muniyield Quality | Platinum Asia vs. Munivest Fund |
| Eagle Capital vs. Eaton Vance New | Eagle Capital vs. Pimco New York | Eagle Capital vs. Nuveen Amt Free Municipal | Eagle Capital vs. Western Asset Municipal |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stocks Directory Find actively traded stocks across global markets |