Correlation Between CHKEZ Old and Eastern Platinum

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

By analyzing existing cross correlation between CHKEZ Old and Eastern Platinum Limited, you can compare the effects of market volatilities on CHKEZ Old and Eastern 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 CHKEZ Old with a short position of Eastern Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHKEZ Old and Eastern Platinum.

Diversification Opportunities for CHKEZ Old and Eastern Platinum

0.0

Correlation Coefficient

CHKEZ Old  Eastern Platinum

Pay attention - limited upside

The 3 months correlation between CHKEZ and Eastern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHKEZ Old and Eastern Platinum Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Platinum and CHKEZ Old 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 CHKEZ Old are associated (or correlated) with Eastern Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Platinum has no effect on the direction of CHKEZ Old i.e., CHKEZ Old and Eastern Platinum go up and down completely randomly.

Pair Corralation between CHKEZ Old and Eastern Platinum

If you would invest  10.00  in Eastern Platinum Limited on December 21, 2024 and sell it today you would earn a total of  2.00  from holding Eastern Platinum Limited or generate 20.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CHKEZ Old  vs.  Eastern Platinum Limited

CHKEZ Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days CHKEZ Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, CHKEZ Old is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Eastern Platinum

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Eastern Platinum Limited are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Eastern Platinum reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CHKEZ Old and Eastern Platinum

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

The idea behind CHKEZ Old and Eastern Platinum Limited 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.