Correlation Between Platinum Investment and American Public
Can any of the company-specific risk be diversified away by investing in both Platinum Investment and American Public 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 Platinum Investment and American Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Investment Management and American Public Education, you can compare the effects of market volatilities on Platinum Investment and American Public 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 Platinum Investment with a short position of American Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Investment and American Public.
Diversification Opportunities for Platinum Investment and American Public
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Platinum and American is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Investment Management and American Public Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Public Education and Platinum Investment 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 Platinum Investment Management are associated (or correlated) with American Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Public Education has no effect on the direction of Platinum Investment i.e., Platinum Investment and American Public go up and down completely randomly.
Pair Corralation between Platinum Investment and American Public
Assuming the 90 days horizon Platinum Investment Management is expected to under-perform the American Public. But the stock apears to be less risky and, when comparing its historical volatility, Platinum Investment Management is 2.96 times less risky than American Public. The stock trades about -0.42 of its potential returns per unit of risk. The American Public Education is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,370 in American Public Education on August 31, 2024 and sell it today you would earn a total of 520.00 from holding American Public Education or generate 37.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Investment Management vs. American Public Education
Performance |
| Timeline |
| Platinum Investment |
| American Public Education |
Platinum Investment and American Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Investment and American Public
The main advantage of trading using opposite Platinum Investment and American Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Investment position performs unexpectedly, American Public 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 American Public will offset losses from the drop in American Public's long position.| Platinum Investment vs. PSI Software AG | Platinum Investment vs. China BlueChemical | Platinum Investment vs. UPDATE SOFTWARE | Platinum Investment vs. VITEC SOFTWARE GROUP |
| American Public vs. IDP EDUCATION LTD | American Public vs. Strategic Education | American Public vs. Laureate Education | American Public vs. Superior Plus 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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