Correlation Between Platinum Group and Arras Minerals
Can any of the company-specific risk be diversified away by investing in both Platinum Group and Arras Minerals 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 Group and Arras Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Group Metals and Arras Minerals Corp, you can compare the effects of market volatilities on Platinum Group and Arras Minerals 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 Group with a short position of Arras Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Group and Arras Minerals.
Diversification Opportunities for Platinum Group and Arras Minerals
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Platinum and Arras is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Group Metals and Arras Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arras Minerals Corp and Platinum Group 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 Group Metals are associated (or correlated) with Arras Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arras Minerals Corp has no effect on the direction of Platinum Group i.e., Platinum Group and Arras Minerals go up and down completely randomly.
Pair Corralation between Platinum Group and Arras Minerals
Considering the 90-day investment horizon Platinum Group Metals is expected to generate 0.91 times more return on investment than Arras Minerals. However, Platinum Group Metals is 1.1 times less risky than Arras Minerals. It trades about 0.08 of its potential returns per unit of risk. Arras Minerals Corp is currently generating about -0.02 per unit of risk. If you would invest 143.00 in Platinum Group Metals on August 30, 2024 and sell it today you would earn a total of 19.00 from holding Platinum Group Metals or generate 13.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Platinum Group Metals vs. Arras Minerals Corp
Performance |
| Timeline |
| Platinum Group Metals |
| Arras Minerals Corp |
Platinum Group and Arras Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Group and Arras Minerals
The main advantage of trading using opposite Platinum Group and Arras Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Group position performs unexpectedly, Arras Minerals 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 Arras Minerals will offset losses from the drop in Arras Minerals' long position.| Platinum Group vs. Endeavour Silver Corp | Platinum Group vs. Avino Silver Gold | Platinum Group vs. Fortuna Silver Mines | Platinum Group vs. Impala Platinum Holdings |
| Arras Minerals vs. American Sierra Gold | Arras Minerals vs. Gold79 Mines | Arras Minerals vs. Cartier Iron Corp | Arras Minerals vs. Alien Metals |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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