Correlation Between Platinum and PINTHONG INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both Platinum and PINTHONG INDUSTRIAL 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 and PINTHONG INDUSTRIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Platinum Group and PINTHONG INDUSTRIAL PARK, you can compare the effects of market volatilities on Platinum and PINTHONG INDUSTRIAL 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 with a short position of PINTHONG INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum and PINTHONG INDUSTRIAL.
Diversification Opportunities for Platinum and PINTHONG INDUSTRIAL
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Platinum and PINTHONG is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding The Platinum Group and PINTHONG INDUSTRIAL PARK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PINTHONG INDUSTRIAL PARK and Platinum 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 The Platinum Group are associated (or correlated) with PINTHONG INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PINTHONG INDUSTRIAL PARK has no effect on the direction of Platinum i.e., Platinum and PINTHONG INDUSTRIAL go up and down completely randomly.
Pair Corralation between Platinum and PINTHONG INDUSTRIAL
Assuming the 90 days trading horizon The Platinum Group is expected to generate 16.65 times more return on investment than PINTHONG INDUSTRIAL. However, Platinum is 16.65 times more volatile than PINTHONG INDUSTRIAL PARK. It trades about 0.04 of its potential returns per unit of risk. PINTHONG INDUSTRIAL PARK is currently generating about 0.07 per unit of risk. If you would invest 320.00 in The Platinum Group on August 31, 2024 and sell it today you would lose (88.00) from holding The Platinum Group or give up 27.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
The Platinum Group vs. PINTHONG INDUSTRIAL PARK
Performance |
| Timeline |
| Platinum Group |
| PINTHONG INDUSTRIAL PARK |
Platinum and PINTHONG INDUSTRIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum and PINTHONG INDUSTRIAL
The main advantage of trading using opposite Platinum and PINTHONG INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum position performs unexpectedly, PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL will offset losses from the drop in PINTHONG INDUSTRIAL's long position.| Platinum vs. TRV Rubber Products | Platinum vs. Porn Prom Metal | Platinum vs. JD Food PCL | Platinum vs. PTT OIL RETAIL |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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