Correlation Between Panther Metals and Lindsell Train
Can any of the company-specific risk be diversified away by investing in both Panther Metals and Lindsell Train 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 Lindsell Train 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 Lindsell Train Investment, you can compare the effects of market volatilities on Panther Metals and Lindsell Train 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 Lindsell Train. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and Lindsell Train.
Diversification Opportunities for Panther Metals and Lindsell Train
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Panther and Lindsell is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and Lindsell Train Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindsell Train Investment 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 Lindsell Train. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lindsell Train Investment has no effect on the direction of Panther Metals i.e., Panther Metals and Lindsell Train go up and down completely randomly.
Pair Corralation between Panther Metals and Lindsell Train
Assuming the 90 days trading horizon Panther Metals PLC is expected to generate 3.75 times more return on investment than Lindsell Train. However, Panther Metals is 3.75 times more volatile than Lindsell Train Investment. It trades about 0.1 of its potential returns per unit of risk. Lindsell Train Investment is currently generating about -0.23 per unit of risk. If you would invest 10,000 in Panther Metals PLC on September 5, 2024 and sell it today you would earn a total of 1,000.00 from holding Panther Metals PLC or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Panther Metals PLC vs. Lindsell Train Investment
Performance |
| Timeline |
| Panther Metals PLC |
| Lindsell Train Investment |
Panther Metals and Lindsell Train Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and Lindsell Train
The main advantage of trading using opposite Panther Metals and Lindsell Train positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals position performs unexpectedly, Lindsell Train 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 Lindsell Train will offset losses from the drop in Lindsell Train's long position.| Panther Metals vs. Givaudan SA | Panther Metals vs. Antofagasta PLC | Panther Metals vs. Atalaya Mining | Panther Metals vs. Ferrexpo PLC |
| Lindsell Train vs. Microchip Technology | Lindsell Train vs. Panther Metals PLC | Lindsell Train vs. Silvercorp Metals | Lindsell Train vs. Allianz Technology Trust |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |