Correlation Between Platinum Asia and Invesco Trust
Can any of the company-specific risk be diversified away by investing in both Platinum Asia and Invesco Trust 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 Invesco Trust 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 Invesco Trust For, you can compare the effects of market volatilities on Platinum Asia and Invesco Trust 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 Invesco Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asia and Invesco Trust.
Diversification Opportunities for Platinum Asia and Invesco Trust
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Platinum and Invesco is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asia Investments and Invesco Trust For in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Trust For 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 Invesco Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Trust For has no effect on the direction of Platinum Asia i.e., Platinum Asia and Invesco Trust go up and down completely randomly.
Pair Corralation between Platinum Asia and Invesco Trust
Considering the 90-day investment horizon Platinum Asia Investments is expected to under-perform the Invesco Trust. In addition to that, Platinum Asia is 1.46 times more volatile than Invesco Trust For. It trades about 0.0 of its total potential returns per unit of risk. Invesco Trust For is currently generating about 0.26 per unit of volatility. If you would invest 1,114 in Invesco Trust For on August 28, 2024 and sell it today you would earn a total of 30.00 from holding Invesco Trust For or generate 2.69% 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. Invesco Trust For
Performance |
| Timeline |
| Platinum Asia Investments |
| Invesco Trust For |
Platinum Asia and Invesco Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Asia and Invesco Trust
The main advantage of trading using opposite Platinum Asia and Invesco Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asia position performs unexpectedly, Invesco Trust 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 Invesco Trust will offset losses from the drop in Invesco Trust's long position.| Platinum Asia vs. The Gabelli Dividend | Platinum Asia vs. Voya Global Advantage | Platinum Asia vs. Invesco California Value | Platinum Asia vs. John Hancock Investors |
| Invesco Trust vs. Pimco New York | Invesco Trust vs. Pimco New York | Invesco Trust vs. BlackRock New York | Invesco Trust vs. Invesco California Value |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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