Correlation Between Platinum Investment and HEALTHSTREAM (HL5SG)
Can any of the company-specific risk be diversified away by investing in both Platinum Investment and HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM, you can compare the effects of market volatilities on Platinum Investment and HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM (HL5SG). Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Investment and HEALTHSTREAM (HL5SG).
Diversification Opportunities for Platinum Investment and HEALTHSTREAM (HL5SG)
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Platinum and HEALTHSTREAM is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Investment Management and HEALTHSTREAM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM (HL5SG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEALTHSTREAM (HL5SG) has no effect on the direction of Platinum Investment i.e., Platinum Investment and HEALTHSTREAM (HL5SG) go up and down completely randomly.
Pair Corralation between Platinum Investment and HEALTHSTREAM (HL5SG)
Assuming the 90 days horizon Platinum Investment Management is expected to under-perform the HEALTHSTREAM (HL5SG). In addition to that, Platinum Investment is 2.29 times more volatile than HEALTHSTREAM. It trades about -0.02 of its total potential returns per unit of risk. HEALTHSTREAM is currently generating about 0.08 per unit of volatility. If you would invest 3,080 in HEALTHSTREAM on November 3, 2024 and sell it today you would earn a total of 60.00 from holding HEALTHSTREAM or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Platinum Investment Management vs. HEALTHSTREAM
Performance |
| Timeline |
| Platinum Investment |
| HEALTHSTREAM (HL5SG) |
Platinum Investment and HEALTHSTREAM (HL5SG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Investment and HEALTHSTREAM (HL5SG)
The main advantage of trading using opposite Platinum Investment and HEALTHSTREAM (HL5SG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Investment position performs unexpectedly, HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM (HL5SG) will offset losses from the drop in HEALTHSTREAM (HL5SG)'s long position.| Platinum Investment vs. Blackstone Group | Platinum Investment vs. The Bank of | Platinum Investment vs. Ameriprise Financial | Platinum Investment vs. State Street |
| HEALTHSTREAM (HL5SG) vs. SIVERS SEMICONDUCTORS AB | HEALTHSTREAM (HL5SG) vs. NorAm Drilling AS | HEALTHSTREAM (HL5SG) vs. Volkswagen AG | HEALTHSTREAM (HL5SG) vs. Darden Restaurants |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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