Correlation Between Platinum Asset and Ssr Mining
Can any of the company-specific risk be diversified away by investing in both Platinum Asset and Ssr Mining 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 Ssr Mining 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 Ssr Mining, you can compare the effects of market volatilities on Platinum Asset and Ssr Mining 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 Ssr Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asset and Ssr Mining.
Diversification Opportunities for Platinum Asset and Ssr Mining
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Platinum and Ssr is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asset Management and Ssr Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssr Mining 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 Ssr Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssr Mining has no effect on the direction of Platinum Asset i.e., Platinum Asset and Ssr Mining go up and down completely randomly.
Pair Corralation between Platinum Asset and Ssr Mining
Assuming the 90 days trading horizon Platinum Asset Management is expected to under-perform the Ssr Mining. But the stock apears to be less risky and, when comparing its historical volatility, Platinum Asset Management is 2.38 times less risky than Ssr Mining. The stock trades about -0.42 of its potential returns per unit of risk. The Ssr Mining is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 947.00 in Ssr Mining on September 1, 2024 and sell it today you would lose (56.00) from holding Ssr Mining or give up 5.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Platinum Asset Management vs. Ssr Mining
Performance |
| Timeline |
| Platinum Asset Management |
| Ssr Mining |
Platinum Asset and Ssr Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Asset and Ssr Mining
The main advantage of trading using opposite Platinum Asset and Ssr Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asset position performs unexpectedly, Ssr Mining 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 Ssr Mining will offset losses from the drop in Ssr Mining's long position.| Platinum Asset vs. WA1 Resources | Platinum Asset vs. Predictive Discovery | Platinum Asset vs. Cooper Metals | Platinum Asset vs. OD6 Metals |
| Ssr Mining vs. BKI Investment | Ssr Mining vs. Navigator Global Investments | Ssr Mining vs. Regal Investment | Ssr Mining vs. GreenX Metals |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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