Correlation Between Platinum Asset and Sky Metals
Can any of the company-specific risk be diversified away by investing in both Platinum Asset and Sky Metals 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 Sky Metals 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 Sky Metals, you can compare the effects of market volatilities on Platinum Asset and Sky Metals 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 Sky Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asset and Sky Metals.
Diversification Opportunities for Platinum Asset and Sky Metals
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Platinum and Sky is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asset Management and Sky Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sky Metals 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 Sky Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sky Metals has no effect on the direction of Platinum Asset i.e., Platinum Asset and Sky Metals go up and down completely randomly.
Pair Corralation between Platinum Asset and Sky Metals
Assuming the 90 days trading horizon Platinum Asset Management is expected to under-perform the Sky Metals. But the stock apears to be less risky and, when comparing its historical volatility, Platinum Asset Management is 1.89 times less risky than Sky Metals. The stock trades about -0.02 of its potential returns per unit of risk. The Sky Metals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4.50 in Sky Metals on November 27, 2024 and sell it today you would earn a total of 0.40 from holding Sky Metals or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Platinum Asset Management vs. Sky Metals
Performance |
| Timeline |
| Platinum Asset Management |
| Sky Metals |
Platinum Asset and Sky Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Asset and Sky Metals
The main advantage of trading using opposite Platinum Asset and Sky Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asset position performs unexpectedly, Sky Metals 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 Sky Metals will offset losses from the drop in Sky Metals' long position.| Platinum Asset vs. M3 Mining | Platinum Asset vs. Aspire Mining | Platinum Asset vs. DMC Mining | Platinum Asset vs. Truscott Mining Corp |
| Sky Metals vs. Lunnon Metals | Sky Metals vs. Air New Zealand | Sky Metals vs. ACDC Metals | Sky Metals vs. Neurotech International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |