Correlation Between Palantir Technologies and Golden Agri-Resources
Can any of the company-specific risk be diversified away by investing in both Palantir Technologies and Golden Agri-Resources 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 Palantir Technologies and Golden Agri-Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Palantir Technologies Class and Golden Agri Resources, you can compare the effects of market volatilities on Palantir Technologies and Golden Agri-Resources 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 Palantir Technologies with a short position of Golden Agri-Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palantir Technologies and Golden Agri-Resources.
Diversification Opportunities for Palantir Technologies and Golden Agri-Resources
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Palantir and Golden is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Palantir Technologies Class and Golden Agri Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Agri Resources and Palantir Technologies 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 Palantir Technologies Class are associated (or correlated) with Golden Agri-Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Agri Resources has no effect on the direction of Palantir Technologies i.e., Palantir Technologies and Golden Agri-Resources go up and down completely randomly.
Pair Corralation between Palantir Technologies and Golden Agri-Resources
Given the investment horizon of 90 days Palantir Technologies Class is expected to under-perform the Golden Agri-Resources. But the stock apears to be less risky and, when comparing its historical volatility, Palantir Technologies Class is 3.46 times less risky than Golden Agri-Resources. The stock trades about -0.04 of its potential returns per unit of risk. The Golden Agri Resources is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Golden Agri Resources on October 26, 2024 and sell it today you would earn a total of 10.00 from holding Golden Agri Resources or generate 76.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Palantir Technologies Class vs. Golden Agri Resources
Performance |
| Timeline |
| Palantir Technologies |
| Golden Agri Resources |
Palantir Technologies and Golden Agri-Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palantir Technologies and Golden Agri-Resources
The main advantage of trading using opposite Palantir Technologies and Golden Agri-Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palantir Technologies position performs unexpectedly, Golden Agri-Resources 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 Golden Agri-Resources will offset losses from the drop in Golden Agri-Resources' long position.| Palantir Technologies vs. Palo Alto Networks | Palantir Technologies vs. Adobe Systems Incorporated | Palantir Technologies vs. Crowdstrike Holdings | Palantir Technologies vs. BLOCK INC |
| Golden Agri-Resources vs. Wilmar International | Golden Agri-Resources vs. SLC Agricola SA | Golden Agri-Resources vs. Brasilagro Adr | Golden Agri-Resources vs. Alico Inc |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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