Correlation Between Platinum Investment and BRAGG GAMING
Can any of the company-specific risk be diversified away by investing in both Platinum Investment and BRAGG GAMING 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 BRAGG GAMING 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 BRAGG GAMING GRP, you can compare the effects of market volatilities on Platinum Investment and BRAGG GAMING 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 BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Investment and BRAGG GAMING.
Diversification Opportunities for Platinum Investment and BRAGG GAMING
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Platinum and BRAGG is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Investment Management and BRAGG GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRAGG GAMING GRP 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 BRAGG GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRAGG GAMING GRP has no effect on the direction of Platinum Investment i.e., Platinum Investment and BRAGG GAMING go up and down completely randomly.
Pair Corralation between Platinum Investment and BRAGG GAMING
Assuming the 90 days horizon Platinum Investment is expected to generate 11.42 times less return on investment than BRAGG GAMING. In addition to that, Platinum Investment is 1.35 times more volatile than BRAGG GAMING GRP. It trades about 0.01 of its total potential returns per unit of risk. BRAGG GAMING GRP is currently generating about 0.09 per unit of volatility. If you would invest 310.00 in BRAGG GAMING GRP on September 26, 2024 and sell it today you would earn a total of 20.00 from holding BRAGG GAMING GRP or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Investment Management vs. BRAGG GAMING GRP
Performance |
| Timeline |
| Platinum Investment |
| BRAGG GAMING GRP |
Platinum Investment and BRAGG GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Investment and BRAGG GAMING
The main advantage of trading using opposite Platinum Investment and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Investment position performs unexpectedly, BRAGG GAMING 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 BRAGG GAMING will offset losses from the drop in BRAGG GAMING's long position.| Platinum Investment vs. Tianjin Capital Environmental | Platinum Investment vs. DAIRY FARM INTL | Platinum Investment vs. BlueScope Steel Limited | Platinum Investment vs. NIPPON STEEL SPADR |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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