Correlation Between Platinum Asset and ImExHS
Can any of the company-specific risk be diversified away by investing in both Platinum Asset and ImExHS 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 Asset and ImExHS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Asset Management and ImExHS, you can compare the effects of market volatilities on Platinum Asset and ImExHS 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 Asset with a short position of ImExHS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asset and ImExHS.
Diversification Opportunities for Platinum Asset and ImExHS
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Platinum and ImExHS is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asset Management and ImExHS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImExHS and Platinum Asset 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 Asset Management are associated (or correlated) with ImExHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImExHS has no effect on the direction of Platinum Asset i.e., Platinum Asset and ImExHS go up and down completely randomly.
Pair Corralation between Platinum Asset and ImExHS
Assuming the 90 days trading horizon Platinum Asset Management is expected to generate 0.74 times more return on investment than ImExHS. However, Platinum Asset Management is 1.35 times less risky than ImExHS. It trades about -0.02 of its potential returns per unit of risk. ImExHS is currently generating about -0.02 per unit of risk. If you would invest 146.00 in Platinum Asset Management on August 31, 2024 and sell it today you would lose (40.00) from holding Platinum Asset Management or give up 27.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.53% |
| Values | Daily Returns |
Platinum Asset Management vs. ImExHS
Performance |
| Timeline |
| Platinum Asset Management |
| ImExHS |
Platinum Asset and ImExHS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Asset and ImExHS
The main advantage of trading using opposite Platinum Asset and ImExHS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asset position performs unexpectedly, ImExHS 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 ImExHS will offset losses from the drop in ImExHS's long position.| Platinum Asset vs. Lendlease Group | Platinum Asset vs. Medical Developments International | Platinum Asset vs. Perpetual Credit Income | Platinum Asset vs. Beston Global Food |
| ImExHS vs. Andean Silver Limited | ImExHS vs. Hotel Property Investments | ImExHS vs. Super Retail Group | ImExHS vs. Black Rock Mining |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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