Correlation Between Platinum Asset and Premier Investments
Can any of the company-specific risk be diversified away by investing in both Platinum Asset and Premier Investments 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 Premier Investments 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 Premier Investments, you can compare the effects of market volatilities on Platinum Asset and Premier Investments 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 Premier Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asset and Premier Investments.
Diversification Opportunities for Platinum Asset and Premier Investments
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Platinum and Premier is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asset Management and Premier Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Investments 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 Premier Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Investments has no effect on the direction of Platinum Asset i.e., Platinum Asset and Premier Investments go up and down completely randomly.
Pair Corralation between Platinum Asset and Premier Investments
Assuming the 90 days trading horizon Platinum Asset Management is expected to under-perform the Premier Investments. In addition to that, Platinum Asset is 2.31 times more volatile than Premier Investments. It trades about -0.36 of its total potential returns per unit of risk. Premier Investments is currently generating about 0.08 per unit of volatility. If you would invest 3,307 in Premier Investments on September 15, 2024 and sell it today you would earn a total of 84.00 from holding Premier Investments or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Asset Management vs. Premier Investments
Performance |
| Timeline |
| Platinum Asset Management |
| Premier Investments |
Platinum Asset and Premier Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Asset and Premier Investments
The main advantage of trading using opposite Platinum Asset and Premier Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asset position performs unexpectedly, Premier Investments 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 Premier Investments will offset losses from the drop in Premier Investments' long position.| Platinum Asset vs. Queste Communications | Platinum Asset vs. Bio Gene Technology | Platinum Asset vs. Computershare | Platinum Asset vs. Perseus Mining |
| Premier Investments vs. Global Data Centre | Premier Investments vs. Homeco Daily Needs | Premier Investments vs. Platinum Asset Management | Premier Investments vs. Kneomedia |
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.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |