Correlation Between Peel Mining and Platinum Asset
Can any of the company-specific risk be diversified away by investing in both Peel Mining and Platinum Asset 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 Peel Mining and Platinum Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peel Mining and Platinum Asset Management, you can compare the effects of market volatilities on Peel Mining and Platinum Asset 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 Peel Mining with a short position of Platinum Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peel Mining and Platinum Asset.
Diversification Opportunities for Peel Mining and Platinum Asset
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Peel and Platinum is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Peel Mining and Platinum Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asset Management and Peel Mining 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 Peel Mining are associated (or correlated) with Platinum Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asset Management has no effect on the direction of Peel Mining i.e., Peel Mining and Platinum Asset go up and down completely randomly.
Pair Corralation between Peel Mining and Platinum Asset
Assuming the 90 days trading horizon Peel Mining is expected to under-perform the Platinum Asset. In addition to that, Peel Mining is 2.08 times more volatile than Platinum Asset Management. It trades about -0.09 of its total potential returns per unit of risk. Platinum Asset Management is currently generating about 0.24 per unit of volatility. If you would invest 69.00 in Platinum Asset Management on November 27, 2024 and sell it today you would earn a total of 7.00 from holding Platinum Asset Management or generate 10.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peel Mining vs. Platinum Asset Management
Performance |
| Timeline |
| Peel Mining |
| Platinum Asset Management |
Peel Mining and Platinum Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peel Mining and Platinum Asset
The main advantage of trading using opposite Peel Mining and Platinum Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peel Mining position performs unexpectedly, Platinum Asset 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 Platinum Asset will offset losses from the drop in Platinum Asset's long position.| Peel Mining vs. Catalyst Metals | Peel Mining vs. Evolution Mining | Peel Mining vs. Group 6 Metals | Peel Mining vs. Perseus Mining |
| Platinum Asset vs. M3 Mining | Platinum Asset vs. Aspire Mining | Platinum Asset vs. DMC Mining | Platinum Asset vs. Truscott Mining 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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