Correlation Between Panther Metals and Lowland Investment
Can any of the company-specific risk be diversified away by investing in both Panther Metals and Lowland Investment 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 Lowland Investment 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 Lowland Investment Co, you can compare the effects of market volatilities on Panther Metals and Lowland Investment 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 Lowland Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and Lowland Investment.
Diversification Opportunities for Panther Metals and Lowland Investment
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Panther and Lowland is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and Lowland Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lowland 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 Lowland Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lowland Investment has no effect on the direction of Panther Metals i.e., Panther Metals and Lowland Investment go up and down completely randomly.
Pair Corralation between Panther Metals and Lowland Investment
Assuming the 90 days trading horizon Panther Metals PLC is expected to generate 4.81 times more return on investment than Lowland Investment. However, Panther Metals is 4.81 times more volatile than Lowland Investment Co. It trades about 0.14 of its potential returns per unit of risk. Lowland Investment Co is currently generating about 0.0 per unit of risk. If you would invest 10,000 in Panther Metals PLC on August 30, 2024 and sell it today you would earn a total of 1,500 from holding Panther Metals PLC or generate 15.0% 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. Lowland Investment Co
Performance |
| Timeline |
| Panther Metals PLC |
| Lowland Investment |
Panther Metals and Lowland Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and Lowland Investment
The main advantage of trading using opposite Panther Metals and Lowland Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals position performs unexpectedly, Lowland Investment 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 Lowland Investment will offset losses from the drop in Lowland Investment's long position.| Panther Metals vs. Givaudan SA | Panther Metals vs. Antofagasta PLC | Panther Metals vs. Centamin PLC | Panther Metals vs. Atalaya Mining |
| Lowland Investment vs. Samsung Electronics Co | Lowland Investment vs. Samsung Electronics Co | Lowland Investment vs. Hyundai Motor | Lowland Investment vs. Toyota Motor Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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