Platinum Commodity Market Value
| PLUSD Commodity | 1,023 3.10 0.30% |
| Symbol | Platinum |
Platinum 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Platinum's commodity what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Platinum.
| 01/08/2025 |
| 02/07/2025 |
If you would invest 0.00 in Platinum on January 8, 2025 and sell it all today you would earn a total of 0.00 from holding Platinum or generate 0.0% return on investment in Platinum over 30 days.
Platinum Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Platinum's commodity current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Platinum upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.59 | |||
| Information Ratio | 1.0E-4 | |||
| Maximum Drawdown | 9.03 | |||
| Value At Risk | (2.20) | |||
| Potential Upside | 2.81 |
Platinum Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Platinum's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Platinum's standard deviation. In reality, there are many statistical measures that can use Platinum historical prices to predict the future Platinum's volatility.| Risk Adjusted Performance | 0.0549 | |||
| Jensen Alpha | 0.0856 | |||
| Total Risk Alpha | (0.08) | |||
| Sortino Ratio | 1.0E-4 | |||
| Treynor Ratio | 3.6 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Platinum's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Platinum Backtested Returns
At this point, Platinum is very steady. Platinum maintains Sharpe Ratio (i.e., Efficiency) of 0.0603, which implies the entity had a 0.0603 % return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Platinum, which you can use to evaluate the volatility of the commodity. Please check Platinum's Semi Deviation of 1.42, coefficient of variation of 1659.56, and Risk Adjusted Performance of 0.0549 to confirm if the risk estimate we provide is consistent with the expected return of 0.0977%. The commodity holds a Beta of 0.0244, which implies not very significant fluctuations relative to the market. As returns on the market increase, Platinum's returns are expected to increase less than the market. However, during the bear market, the loss of holding Platinum is expected to be smaller as well.
Auto-correlation | -0.7 |
Very good reverse predictability
Platinum has very good reverse predictability. Overlapping area represents the amount of predictability between Platinum time series from 8th of January 2025 to 23rd of January 2025 and 23rd of January 2025 to 7th of February 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Platinum price movement. The serial correlation of -0.7 indicates that around 70.0% of current Platinum price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.7 | |
| Spearman Rank Test | -0.25 | |
| Residual Average | 0.0 | |
| Price Variance | 847.78 |
Platinum lagged returns against current returns
Autocorrelation, which is Platinum commodity's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Platinum's commodity expected returns. We can calculate the autocorrelation of Platinum returns to help us make a trade decision. For example, suppose you find that Platinum has exhibited high autocorrelation historically, and you observe that the commodity is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Platinum regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Platinum commodity is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Platinum commodity is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Platinum commodity over time.
Current vs Lagged Prices |
| Timeline |
Platinum Lagged Returns
When evaluating Platinum's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Platinum commodity have on its future price. Platinum autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Platinum autocorrelation shows the relationship between Platinum commodity current value and its past values and can show if there is a momentum factor associated with investing in Platinum.
Regressed Prices |
| Timeline |