Correlation Between Platinum Investment and GOLD ROAD
Can any of the company-specific risk be diversified away by investing in both Platinum Investment and GOLD ROAD 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 GOLD ROAD 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 GOLD ROAD RES, you can compare the effects of market volatilities on Platinum Investment and GOLD ROAD 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 GOLD ROAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Investment and GOLD ROAD.
Diversification Opportunities for Platinum Investment and GOLD ROAD
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Platinum and GOLD is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Investment Management and GOLD ROAD RES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLD ROAD RES 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 GOLD ROAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLD ROAD RES has no effect on the direction of Platinum Investment i.e., Platinum Investment and GOLD ROAD go up and down completely randomly.
Pair Corralation between Platinum Investment and GOLD ROAD
Assuming the 90 days horizon Platinum Investment Management is expected to under-perform the GOLD ROAD. In addition to that, Platinum Investment is 1.02 times more volatile than GOLD ROAD RES. It trades about -0.01 of its total potential returns per unit of risk. GOLD ROAD RES is currently generating about 0.03 per unit of volatility. If you would invest 107.00 in GOLD ROAD RES on October 13, 2024 and sell it today you would earn a total of 22.00 from holding GOLD ROAD RES or generate 20.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Investment Management vs. GOLD ROAD RES
Performance |
| Timeline |
| Platinum Investment |
| GOLD ROAD RES |
Platinum Investment and GOLD ROAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Investment and GOLD ROAD
The main advantage of trading using opposite Platinum Investment and GOLD ROAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Investment position performs unexpectedly, GOLD ROAD 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 GOLD ROAD will offset losses from the drop in GOLD ROAD's long position.| Platinum Investment vs. Cairo Communication SpA | Platinum Investment vs. T Mobile | Platinum Investment vs. GEELY AUTOMOBILE | Platinum Investment vs. Yuexiu Transport Infrastructure |
| GOLD ROAD vs. TRADELINK ELECTRON | GOLD ROAD vs. Easy Software AG | GOLD ROAD vs. H2O Retailing | GOLD ROAD vs. AAC TECHNOLOGHLDGADR |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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