Correlation Between Braveheart Resources and Platinum Group
Can any of the company-specific risk be diversified away by investing in both Braveheart Resources and Platinum Group 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 Braveheart Resources and Platinum Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Braveheart Resources and Platinum Group Metals, you can compare the effects of market volatilities on Braveheart Resources and Platinum Group 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 Braveheart Resources with a short position of Platinum Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braveheart Resources and Platinum Group.
Diversification Opportunities for Braveheart Resources and Platinum Group
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Braveheart and Platinum is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Braveheart Resources and Platinum Group Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Group Metals and Braveheart Resources 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 Braveheart Resources are associated (or correlated) with Platinum Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Group Metals has no effect on the direction of Braveheart Resources i.e., Braveheart Resources and Platinum Group go up and down completely randomly.
Pair Corralation between Braveheart Resources and Platinum Group
Assuming the 90 days horizon Braveheart Resources is expected to generate 1.16 times less return on investment than Platinum Group. In addition to that, Braveheart Resources is 1.35 times more volatile than Platinum Group Metals. It trades about 0.05 of its total potential returns per unit of risk. Platinum Group Metals is currently generating about 0.08 per unit of volatility. If you would invest 100.00 in Platinum Group Metals on August 28, 2024 and sell it today you would earn a total of 74.00 from holding Platinum Group Metals or generate 74.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Braveheart Resources vs. Platinum Group Metals
Performance |
| Timeline |
| Braveheart Resources |
| Platinum Group Metals |
Braveheart Resources and Platinum Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braveheart Resources and Platinum Group
The main advantage of trading using opposite Braveheart Resources and Platinum Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braveheart Resources position performs unexpectedly, Platinum Group 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 Platinum Group will offset losses from the drop in Platinum Group's long position.| Braveheart Resources vs. Regenx Tech Corp | Braveheart Resources vs. Diamond Fields Resources | Braveheart Resources vs. Silver Tiger Metals | Braveheart Resources vs. Monumental Minerals Corp |
| Platinum Group vs. Hecla Mining | Platinum Group vs. McEwen Mining | Platinum Group vs. Endeavour Silver Corp | Platinum Group vs. New Pacific 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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