Correlation Between Platinum Investment and Genesco
Can any of the company-specific risk be diversified away by investing in both Platinum Investment and Genesco 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 Genesco 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 Genesco, you can compare the effects of market volatilities on Platinum Investment and Genesco 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 Genesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Investment and Genesco.
Diversification Opportunities for Platinum Investment and Genesco
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Platinum and Genesco is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Investment Management and Genesco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesco 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 Genesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesco has no effect on the direction of Platinum Investment i.e., Platinum Investment and Genesco go up and down completely randomly.
Pair Corralation between Platinum Investment and Genesco
Assuming the 90 days horizon Platinum Investment Management is expected to under-perform the Genesco. But the stock apears to be less risky and, when comparing its historical volatility, Platinum Investment Management is 1.25 times less risky than Genesco. The stock trades about -0.28 of its potential returns per unit of risk. The Genesco is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 2,840 in Genesco on September 14, 2024 and sell it today you would earn a total of 1,240 from holding Genesco or generate 43.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Investment Management vs. Genesco
Performance |
| Timeline |
| Platinum Investment |
| Genesco |
Platinum Investment and Genesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Investment and Genesco
The main advantage of trading using opposite Platinum Investment and Genesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Investment position performs unexpectedly, Genesco 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 Genesco will offset losses from the drop in Genesco's long position.| Platinum Investment vs. Ameriprise Financial | Platinum Investment vs. Ares Management Corp | Platinum Investment vs. Superior Plus Corp | Platinum Investment vs. SIVERS SEMICONDUCTORS AB |
| Genesco vs. ASURE SOFTWARE | Genesco vs. Platinum Investment Management | Genesco vs. VITEC SOFTWARE GROUP | Genesco vs. Alfa Financial Software |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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