Correlation Between PLATO GOLD and CRAWFORD +

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Can any of the company-specific risk be diversified away by investing in both PLATO GOLD and CRAWFORD + 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 PLATO GOLD and CRAWFORD + into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLATO GOLD P and CRAWFORD A NV, you can compare the effects of market volatilities on PLATO GOLD and CRAWFORD + 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 PLATO GOLD with a short position of CRAWFORD +. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLATO GOLD and CRAWFORD +.

Diversification Opportunities for PLATO GOLD and CRAWFORD +

-0.25
  Correlation Coefficient

Very good diversification

The 3 months correlation between PLATO and CRAWFORD is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding PLATO GOLD P and CRAWFORD A NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRAWFORD A NV and PLATO GOLD 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 PLATO GOLD P are associated (or correlated) with CRAWFORD +. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRAWFORD A NV has no effect on the direction of PLATO GOLD i.e., PLATO GOLD and CRAWFORD + go up and down completely randomly.

Pair Corralation between PLATO GOLD and CRAWFORD +

Assuming the 90 days horizon PLATO GOLD P is expected to generate 21.4 times more return on investment than CRAWFORD +. However, PLATO GOLD is 21.4 times more volatile than CRAWFORD A NV. It trades about 0.18 of its potential returns per unit of risk. CRAWFORD A NV is currently generating about -0.02 per unit of risk. If you would invest  0.65  in PLATO GOLD P on October 15, 2024 and sell it today you would earn a total of  0.35  from holding PLATO GOLD P or generate 53.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

PLATO GOLD P  vs.  CRAWFORD A NV

 Performance 
       Timeline  
PLATO GOLD P 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in PLATO GOLD P are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PLATO GOLD reported solid returns over the last few months and may actually be approaching a breakup point.
CRAWFORD A NV 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CRAWFORD A NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, CRAWFORD + is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

PLATO GOLD and CRAWFORD + Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with PLATO GOLD and CRAWFORD +

The main advantage of trading using opposite PLATO GOLD and CRAWFORD + positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLATO GOLD position performs unexpectedly, CRAWFORD + 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 CRAWFORD + will offset losses from the drop in CRAWFORD +'s long position.
The idea behind PLATO GOLD P and CRAWFORD A NV 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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