Correlation Between SCHALTBAU HOLDING and Platinum Investment
Can any of the company-specific risk be diversified away by investing in both SCHALTBAU HOLDING and Platinum Investment 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 SCHALTBAU HOLDING and Platinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCHALTBAU HOLDING and Platinum Investment Management, you can compare the effects of market volatilities on SCHALTBAU HOLDING and Platinum Investment 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 SCHALTBAU HOLDING with a short position of Platinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCHALTBAU HOLDING and Platinum Investment.
Diversification Opportunities for SCHALTBAU HOLDING and Platinum Investment
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCHALTBAU and Platinum is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding SCHALTBAU HOLDING and Platinum Investment Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Investment and SCHALTBAU HOLDING 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 SCHALTBAU HOLDING are associated (or correlated) with Platinum Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Investment has no effect on the direction of SCHALTBAU HOLDING i.e., SCHALTBAU HOLDING and Platinum Investment go up and down completely randomly.
Pair Corralation between SCHALTBAU HOLDING and Platinum Investment
Assuming the 90 days trading horizon SCHALTBAU HOLDING is expected to generate 0.39 times more return on investment than Platinum Investment. However, SCHALTBAU HOLDING is 2.58 times less risky than Platinum Investment. It trades about 0.02 of its potential returns per unit of risk. Platinum Investment Management is currently generating about -0.01 per unit of risk. If you would invest 5,435 in SCHALTBAU HOLDING on August 31, 2024 and sell it today you would earn a total of 365.00 from holding SCHALTBAU HOLDING or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCHALTBAU HOLDING vs. Platinum Investment Management
Performance |
| Timeline |
| SCHALTBAU HOLDING |
| Platinum Investment |
SCHALTBAU HOLDING and Platinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCHALTBAU HOLDING and Platinum Investment
The main advantage of trading using opposite SCHALTBAU HOLDING and Platinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCHALTBAU HOLDING position performs unexpectedly, Platinum Investment 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 Investment will offset losses from the drop in Platinum Investment's long position.| SCHALTBAU HOLDING vs. Apple Inc | SCHALTBAU HOLDING vs. Apple Inc | SCHALTBAU HOLDING vs. Apple Inc | SCHALTBAU HOLDING vs. Apple Inc |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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