Correlation Between Platinum Investment and National Retail
Can any of the company-specific risk be diversified away by investing in both Platinum Investment and National Retail 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 National Retail 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 National Retail Properties, you can compare the effects of market volatilities on Platinum Investment and National Retail 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 National Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Investment and National Retail.
Diversification Opportunities for Platinum Investment and National Retail
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Platinum and National is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Investment Management and National Retail Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Retail Prop 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 National Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Retail Prop has no effect on the direction of Platinum Investment i.e., Platinum Investment and National Retail go up and down completely randomly.
Pair Corralation between Platinum Investment and National Retail
Assuming the 90 days horizon Platinum Investment Management is expected to under-perform the National Retail. In addition to that, Platinum Investment is 2.05 times more volatile than National Retail Properties. It trades about -0.01 of its total potential returns per unit of risk. National Retail Properties is currently generating about 0.03 per unit of volatility. If you would invest 3,682 in National Retail Properties on September 1, 2024 and sell it today you would earn a total of 516.00 from holding National Retail Properties or generate 14.01% 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. National Retail Properties
Performance |
| Timeline |
| Platinum Investment |
| National Retail Prop |
Platinum Investment and National Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Investment and National Retail
The main advantage of trading using opposite Platinum Investment and National Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Investment position performs unexpectedly, National Retail 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 National Retail will offset losses from the drop in National Retail's long position.| Platinum Investment vs. Ameriprise Financial | Platinum Investment vs. Ares Management Corp | Platinum Investment vs. Superior Plus Corp | Platinum Investment vs. NMI Holdings |
| National Retail vs. Apple Inc | National Retail vs. Apple Inc | National Retail vs. Apple Inc | National Retail vs. Apple Inc |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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