Correlation Between Panther Metals and Future Metals
Can any of the company-specific risk be diversified away by investing in both Panther Metals and Future Metals 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 Panther Metals and Future Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panther Metals PLC and Future Metals NL, you can compare the effects of market volatilities on Panther Metals and Future Metals 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 Panther Metals with a short position of Future Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and Future Metals.
Diversification Opportunities for Panther Metals and Future Metals
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Panther and Future is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and Future Metals NL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Future Metals NL and Panther Metals 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 Panther Metals PLC are associated (or correlated) with Future Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Future Metals NL has no effect on the direction of Panther Metals i.e., Panther Metals and Future Metals go up and down completely randomly.
Pair Corralation between Panther Metals and Future Metals
Assuming the 90 days trading horizon Panther Metals PLC is expected to generate 1.84 times more return on investment than Future Metals. However, Panther Metals is 1.84 times more volatile than Future Metals NL. It trades about 0.25 of its potential returns per unit of risk. Future Metals NL is currently generating about -0.41 per unit of risk. If you would invest 9,500 in Panther Metals PLC on August 27, 2024 and sell it today you would earn a total of 2,750 from holding Panther Metals PLC or generate 28.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panther Metals PLC vs. Future Metals NL
Performance |
| Timeline |
| Panther Metals PLC |
| Future Metals NL |
Panther Metals and Future Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and Future Metals
The main advantage of trading using opposite Panther Metals and Future Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals position performs unexpectedly, Future Metals 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 Future Metals will offset losses from the drop in Future Metals' long position.| Panther Metals vs. Givaudan SA | Panther Metals vs. Antofagasta PLC | Panther Metals vs. Centamin PLC | Panther Metals vs. Atalaya Mining |
| Future Metals vs. Givaudan SA | Future Metals vs. Antofagasta PLC | Future Metals vs. Centamin PLC | Future Metals vs. Atalaya Mining |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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