Correlation Between Platinum Asset and Steamships Trading
Can any of the company-specific risk be diversified away by investing in both Platinum Asset and Steamships Trading 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 Steamships Trading 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 Steamships Trading, you can compare the effects of market volatilities on Platinum Asset and Steamships Trading 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 Steamships Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asset and Steamships Trading.
Diversification Opportunities for Platinum Asset and Steamships Trading
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Platinum and Steamships is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asset Management and Steamships Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steamships Trading 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 Steamships Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steamships Trading has no effect on the direction of Platinum Asset i.e., Platinum Asset and Steamships Trading go up and down completely randomly.
Pair Corralation between Platinum Asset and Steamships Trading
Assuming the 90 days trading horizon Platinum Asset Management is expected to under-perform the Steamships Trading. In addition to that, Platinum Asset is 1.81 times more volatile than Steamships Trading. It trades about -0.03 of its total potential returns per unit of risk. Steamships Trading is currently generating about 0.05 per unit of volatility. If you would invest 988.00 in Steamships Trading on September 28, 2024 and sell it today you would earn a total of 392.00 from holding Steamships Trading or generate 39.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Platinum Asset Management vs. Steamships Trading
Performance |
| Timeline |
| Platinum Asset Management |
| Steamships Trading |
Platinum Asset and Steamships Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Asset and Steamships Trading
The main advantage of trading using opposite Platinum Asset and Steamships Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asset position performs unexpectedly, Steamships Trading 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 Steamships Trading will offset losses from the drop in Steamships Trading's long position.| Platinum Asset vs. Aneka Tambang Tbk | Platinum Asset vs. Macquarie Group | Platinum Asset vs. Macquarie Group Ltd | Platinum Asset vs. Challenger |
| Steamships Trading vs. Ainsworth Game Technology | Steamships Trading vs. Computershare | Steamships Trading vs. Pinnacle Investment Management | Steamships Trading vs. Platinum Asset Management |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |