Correlation Between Platinum Group and Buyer Group
Can any of the company-specific risk be diversified away by investing in both Platinum Group and Buyer Group 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 Buyer Group 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 Buyer Group International, you can compare the effects of market volatilities on Platinum Group and Buyer Group 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 Buyer Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Group and Buyer Group.
Diversification Opportunities for Platinum Group and Buyer Group
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Platinum and Buyer is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Group Metals and Buyer Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buyer Group International 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 Buyer Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buyer Group International has no effect on the direction of Platinum Group i.e., Platinum Group and Buyer Group go up and down completely randomly.
Pair Corralation between Platinum Group and Buyer Group
Considering the 90-day investment horizon Platinum Group Metals is expected to under-perform the Buyer Group. But the stock apears to be less risky and, when comparing its historical volatility, Platinum Group Metals is 1.68 times less risky than Buyer Group. The stock trades about -0.19 of its potential returns per unit of risk. The Buyer Group International is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.15 in Buyer Group International on August 29, 2024 and sell it today you would earn a total of 0.02 from holding Buyer Group International or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Group Metals vs. Buyer Group International
Performance |
| Timeline |
| Platinum Group Metals |
| Buyer Group International |
Platinum Group and Buyer Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Group and Buyer Group
The main advantage of trading using opposite Platinum Group and Buyer Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Group position performs unexpectedly, Buyer Group 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 Buyer Group will offset losses from the drop in Buyer Group's 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 |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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