Correlation Between SMX Public and Planet Image
Can any of the company-specific risk be diversified away by investing in both SMX Public and Planet Image 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 SMX Public and Planet Image into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SMX Public Limited and Planet Image International, you can compare the effects of market volatilities on SMX Public and Planet Image 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 SMX Public with a short position of Planet Image. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMX Public and Planet Image.
Diversification Opportunities for SMX Public and Planet Image
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SMX and Planet is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding SMX Public Limited and Planet Image International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Image Interna and SMX Public 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 SMX Public Limited are associated (or correlated) with Planet Image. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Planet Image Interna has no effect on the direction of SMX Public i.e., SMX Public and Planet Image go up and down completely randomly.
Pair Corralation between SMX Public and Planet Image
Considering the 90-day investment horizon SMX Public Limited is expected to under-perform the Planet Image. In addition to that, SMX Public is 1.96 times more volatile than Planet Image International. It trades about -0.08 of its total potential returns per unit of risk. Planet Image International is currently generating about 0.05 per unit of volatility. If you would invest 279.00 in Planet Image International on September 2, 2024 and sell it today you would earn a total of 89.00 from holding Planet Image International or generate 31.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 87.1% |
| Values | Daily Returns |
SMX Public Limited vs. Planet Image International
Performance |
| Timeline |
| SMX Public Limited |
| Planet Image Interna |
SMX Public and Planet Image Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMX Public and Planet Image
The main advantage of trading using opposite SMX Public and Planet Image positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMX Public position performs unexpectedly, Planet Image 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 Planet Image will offset losses from the drop in Planet Image's long position.| SMX Public vs. Team Inc | SMX Public vs. Lichen China Limited | SMX Public vs. System1 | SMX Public vs. Eastman Kodak Co |
| Planet Image vs. Allient | Planet Image vs. Merit Medical Systems | Planet Image vs. Skechers USA | Planet Image vs. JBG SMITH Properties |
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.
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