Correlation Between Telix Pharmaceuticals and Platinum Asset
Can any of the company-specific risk be diversified away by investing in both Telix Pharmaceuticals 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 Telix Pharmaceuticals and Platinum Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telix Pharmaceuticals and Platinum Asset Management, you can compare the effects of market volatilities on Telix Pharmaceuticals 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 Telix Pharmaceuticals with a short position of Platinum Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telix Pharmaceuticals and Platinum Asset.
Diversification Opportunities for Telix Pharmaceuticals and Platinum Asset
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Telix and Platinum is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Telix Pharmaceuticals 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 Telix Pharmaceuticals 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 Telix Pharmaceuticals 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 Telix Pharmaceuticals i.e., Telix Pharmaceuticals and Platinum Asset go up and down completely randomly.
Pair Corralation between Telix Pharmaceuticals and Platinum Asset
Assuming the 90 days trading horizon Telix Pharmaceuticals is expected to generate 1.08 times more return on investment than Platinum Asset. However, Telix Pharmaceuticals is 1.08 times more volatile than Platinum Asset Management. It trades about 0.11 of its potential returns per unit of risk. Platinum Asset Management is currently generating about -0.04 per unit of risk. If you would invest 712.00 in Telix Pharmaceuticals on October 21, 2024 and sell it today you would earn a total of 1,947 from holding Telix Pharmaceuticals or generate 273.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telix Pharmaceuticals vs. Platinum Asset Management
Performance |
| Timeline |
| Telix Pharmaceuticals |
| Platinum Asset Management |
Telix Pharmaceuticals and Platinum Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telix Pharmaceuticals and Platinum Asset
The main advantage of trading using opposite Telix Pharmaceuticals and Platinum Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telix Pharmaceuticals 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.| Telix Pharmaceuticals vs. Queste Communications | Telix Pharmaceuticals vs. Macquarie Technology Group | Telix Pharmaceuticals vs. FireFly Metals | Telix Pharmaceuticals vs. IDP Education |
| Platinum Asset vs. Westpac Banking | Platinum Asset vs. Sports Entertainment Group | Platinum Asset vs. Wt Financial Group | Platinum Asset vs. Dexus Convenience Retail |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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