Correlation Between Panther Metals and 3I Group
Can any of the company-specific risk be diversified away by investing in both Panther Metals and 3I Group 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 3I Group 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 3I Group PLC, you can compare the effects of market volatilities on Panther Metals and 3I Group 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 3I Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and 3I Group.
Diversification Opportunities for Panther Metals and 3I Group
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Panther and III is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and 3I Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3I Group PLC 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 3I Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3I Group PLC has no effect on the direction of Panther Metals i.e., Panther Metals and 3I Group go up and down completely randomly.
Pair Corralation between Panther Metals and 3I Group
Assuming the 90 days trading horizon Panther Metals PLC is expected to generate 53.84 times more return on investment than 3I Group. However, Panther Metals is 53.84 times more volatile than 3I Group PLC. It trades about 0.07 of its potential returns per unit of risk. 3I Group PLC is currently generating about 0.14 per unit of risk. If you would invest 11,875 in Panther Metals PLC on September 23, 2024 and sell it today you would lose (3,625) from holding Panther Metals PLC or give up 30.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Panther Metals PLC vs. 3I Group PLC
Performance |
| Timeline |
| Panther Metals PLC |
| 3I Group PLC |
Panther Metals and 3I Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and 3I Group
The main advantage of trading using opposite Panther Metals and 3I Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals position performs unexpectedly, 3I Group 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 3I Group will offset losses from the drop in 3I Group's long position.| Panther Metals vs. Infrastrutture Wireless Italiane | Panther Metals vs. Deltex Medical Group | Panther Metals vs. United Internet AG | Panther Metals vs. Spirent Communications plc |
| 3I Group vs. McEwen Mining | 3I Group vs. Panther Metals PLC | 3I Group vs. Molson Coors Beverage | 3I Group vs. Jacquet Metal Service |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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