Correlation Between Ras Technology and Platinum Asset
Can any of the company-specific risk be diversified away by investing in both Ras Technology and Platinum Asset 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 Ras Technology and Platinum Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ras Technology Holdings and Platinum Asset Management, you can compare the effects of market volatilities on Ras Technology and Platinum Asset 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 Ras Technology with a short position of Platinum Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ras Technology and Platinum Asset.
Diversification Opportunities for Ras Technology and Platinum Asset
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ras and Platinum is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ras Technology Holdings and Platinum Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asset Management and Ras Technology 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 Ras Technology Holdings are associated (or correlated) with Platinum Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asset Management has no effect on the direction of Ras Technology i.e., Ras Technology and Platinum Asset go up and down completely randomly.
Pair Corralation between Ras Technology and Platinum Asset
Assuming the 90 days trading horizon Ras Technology Holdings is expected to under-perform the Platinum Asset. In addition to that, Ras Technology is 1.79 times more volatile than Platinum Asset Management. It trades about -0.32 of its total potential returns per unit of risk. Platinum Asset Management is currently generating about -0.07 per unit of volatility. If you would invest 70.00 in Platinum Asset Management on November 7, 2024 and sell it today you would lose (2.00) from holding Platinum Asset Management or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Ras Technology Holdings vs. Platinum Asset Management
Performance |
| Timeline |
| Ras Technology Holdings |
| Platinum Asset Management |
Ras Technology and Platinum Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ras Technology and Platinum Asset
The main advantage of trading using opposite Ras Technology and Platinum Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ras Technology position performs unexpectedly, Platinum Asset 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 Asset will offset losses from the drop in Platinum Asset's long position.| Ras Technology vs. Retail Food Group | Ras Technology vs. Cosmo Metals | Ras Technology vs. Rare Foods Australia | Ras Technology vs. Charter Hall Retail |
| Platinum Asset vs. Perseus Mining | Platinum Asset vs. Globe Metals Mining | Platinum Asset vs. Evolution Mining | Platinum Asset vs. Kip McGrath Education |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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