Correlation Between Pinnacle Investment and Platinum Asset
Can any of the company-specific risk be diversified away by investing in both Pinnacle Investment and Platinum Asset 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 Pinnacle Investment and Platinum Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinnacle Investment Management and Platinum Asset Management, you can compare the effects of market volatilities on Pinnacle Investment and Platinum Asset 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 Pinnacle Investment with a short position of Platinum Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinnacle Investment and Platinum Asset.
Diversification Opportunities for Pinnacle Investment and Platinum Asset
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pinnacle and Platinum is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Pinnacle Investment Management and Platinum Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asset Management and Pinnacle 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 Pinnacle Investment Management are associated (or correlated) with Platinum Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asset Management has no effect on the direction of Pinnacle Investment i.e., Pinnacle Investment and Platinum Asset go up and down completely randomly.
Pair Corralation between Pinnacle Investment and Platinum Asset
Assuming the 90 days trading horizon Pinnacle Investment Management is expected to generate 0.76 times more return on investment than Platinum Asset. However, Pinnacle Investment Management is 1.31 times less risky than Platinum Asset. It trades about 0.1 of its potential returns per unit of risk. Platinum Asset Management is currently generating about -0.04 per unit of risk. If you would invest 985.00 in Pinnacle Investment Management on October 21, 2024 and sell it today you would earn a total of 1,384 from holding Pinnacle Investment Management or generate 140.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pinnacle Investment Management vs. Platinum Asset Management
Performance |
| Timeline |
| Pinnacle Investment |
| Platinum Asset Management |
Pinnacle Investment and Platinum Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinnacle Investment and Platinum Asset
The main advantage of trading using opposite Pinnacle Investment and Platinum Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinnacle Investment position performs unexpectedly, Platinum Asset 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 Platinum Asset will offset losses from the drop in Platinum Asset's long position.| Pinnacle Investment vs. Queste Communications | Pinnacle Investment vs. IDP Education | Pinnacle Investment vs. Bisalloy Steel Group | Pinnacle Investment vs. The Environmental Group |
| Platinum Asset vs. Westpac Banking | Platinum Asset vs. Sports Entertainment Group | Platinum Asset vs. Wt Financial Group | Platinum Asset vs. Dexus Convenience Retail |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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