Correlation Between Asia Sermkij and Platinum

Can any of the company-specific risk be diversified away by investing in both Asia Sermkij and Platinum 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 Asia Sermkij and Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Asia Sermkij Leasing and The Platinum Group, you can compare the effects of market volatilities on Asia Sermkij and Platinum 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 Asia Sermkij with a short position of Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Sermkij and Platinum.

Diversification Opportunities for Asia Sermkij and Platinum

-0.15

Correlation Coefficient

Asia Sermkij  Platinum

Good diversification

The 3 months correlation between Asia and Platinum is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Asia Sermkij Leasing and The Platinum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Group and Asia Sermkij 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 Asia Sermkij Leasing are associated (or correlated) with Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Group has no effect on the direction of Asia Sermkij i.e., Asia Sermkij and Platinum go up and down completely randomly.

Pair Corralation between Asia Sermkij and Platinum

Assuming the 90 days trading horizon Asia Sermkij Leasing is expected to generate 0.8 times more return on investment than Platinum. However, Asia Sermkij Leasing is 1.24 times less risky than Platinum. It trades about -0.12 of its potential returns per unit of risk. The Platinum Group is currently generating about -0.22 per unit of risk. If you would invest  1,060  in Asia Sermkij Leasing on September 28, 2024 and sell it today you would lose (40.00) from holding Asia Sermkij Leasing or give up 3.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Asia Sermkij Leasing  vs.  The Platinum Group

Asia Sermkij Leasing

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asia Sermkij Leasing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Platinum Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Platinum Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Platinum is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Asia Sermkij and Platinum

The main advantage of trading using opposite Asia Sermkij and Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Sermkij position performs unexpectedly, Platinum 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 will offset losses from the drop in Platinum's long position.

The idea behind Asia Sermkij Leasing and The Platinum Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.