Correlation Between Maggie Beer and Platinum Asset

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

By analyzing existing cross correlation between Maggie Beer Holdings and Platinum Asset Management, you can compare the effects of market volatilities on Maggie Beer 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 Maggie Beer with a short position of Platinum Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maggie Beer and Platinum Asset.

Diversification Opportunities for Maggie Beer and Platinum Asset

-0.44

Correlation Coefficient

Maggie Beer  Platinum Asset

Very good diversification

The 3 months correlation between Maggie and Platinum is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Maggie Beer Holdings 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 Maggie Beer 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 Maggie Beer Holdings 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 Maggie Beer i.e., Maggie Beer and Platinum Asset go up and down completely randomly.

Pair Corralation between Maggie Beer and Platinum Asset

Assuming the 90 days trading horizon Maggie Beer Holdings is expected to generate 0.83 times more return on investment than Platinum Asset. However, Maggie Beer Holdings is 1.21 times less risky than Platinum Asset. It trades about 0.09 of its potential returns per unit of risk. Platinum Asset Management is currently generating about -0.07 per unit of risk. If you would invest  5.40  in Maggie Beer Holdings on December 21, 2024 and sell it today you would earn a total of  0.70  from holding Maggie Beer Holdings or generate 12.96% return on investment over 90 days.

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

Maggie Beer Holdings  vs.  Platinum Asset Management

Maggie Beer Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Maggie Beer Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical indicators, Maggie Beer unveiled solid returns over the last few months and may actually be approaching a breakup point.

Platinum Asset Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Platinum Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Maggie Beer and Platinum Asset

The main advantage of trading using opposite Maggie Beer and Platinum Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maggie Beer 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.

The idea behind Maggie Beer Holdings and Platinum Asset Management 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.