Correlation Between Minerals Technologies and Planet 13

Can any of the company-specific risk be diversified away by investing in both Minerals Technologies and Planet 13 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 Minerals Technologies and Planet 13 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Minerals Technologies and Planet 13 Holdings, you can compare the effects of market volatilities on Minerals Technologies and Planet 13 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 Minerals Technologies with a short position of Planet 13. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minerals Technologies and Planet 13.

Diversification Opportunities for Minerals Technologies and Planet 13

0.03

Correlation Coefficient

Minerals Technologies  Planet 13

Significant diversification

The 3 months correlation between Minerals and Planet is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Minerals Technologies and Planet 13 Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet 13 Holdings and Minerals Technologies 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 Minerals Technologies are associated (or correlated) with Planet 13. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Planet 13 Holdings has no effect on the direction of Minerals Technologies i.e., Minerals Technologies and Planet 13 go up and down completely randomly.

Pair Corralation between Minerals Technologies and Planet 13

Considering the 90-day investment horizon Minerals Technologies is expected to generate 0.31 times more return on investment than Planet 13. However, Minerals Technologies is 3.18 times less risky than Planet 13. It trades about 0.0 of its potential returns per unit of risk. Planet 13 Holdings is currently generating about -0.12 per unit of risk. If you would invest  7,706  in Minerals Technologies on October 23, 2024 and sell it today you would lose (90.00) from holding Minerals Technologies or give up 1.17% of portfolio value over 90 days.

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

Minerals Technologies  vs.  Planet 13 Holdings

Minerals Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

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

Planet 13 Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Planet 13 Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Minerals Technologies and Planet 13

The main advantage of trading using opposite Minerals Technologies and Planet 13 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minerals Technologies position performs unexpectedly, Planet 13 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 Planet 13 will offset losses from the drop in Planet 13's long position.

The idea behind Minerals Technologies and Planet 13 Holdings 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.