Correlation Between Abrdn Physical and GraniteShares Platinum

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

By analyzing existing cross correlation between abrdn Physical Palladium and GraniteShares Platinum Trust, you can compare the effects of market volatilities on Abrdn Physical and GraniteShares 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 Abrdn Physical with a short position of GraniteShares Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Physical and GraniteShares Platinum.

Diversification Opportunities for Abrdn Physical and GraniteShares Platinum

0.78

Correlation Coefficient

Abrdn Physical  GraniteShares Platinum

Poor diversification

The 3 months correlation between Abrdn and GraniteShares is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding abrdn Physical Palladium and GraniteShares Platinum Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares Platinum and Abrdn Physical 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 abrdn Physical Palladium are associated (or correlated) with GraniteShares Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares Platinum has no effect on the direction of Abrdn Physical i.e., Abrdn Physical and GraniteShares Platinum go up and down completely randomly.

Pair Corralation between Abrdn Physical and GraniteShares Platinum

Given the investment horizon of 90 days abrdn Physical Palladium is expected to under-perform the GraniteShares Platinum. In addition to that, Abrdn Physical is 1.49 times more volatile than GraniteShares Platinum Trust. It trades about -0.18 of its total potential returns per unit of risk. GraniteShares Platinum Trust is currently generating about -0.11 per unit of volatility. If you would invest  1,001  in GraniteShares Platinum Trust on October 27, 2024 and sell it today you would lose (82.00) from holding GraniteShares Platinum Trust or give up 8.19% of portfolio value over 90 days.

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

abrdn Physical Palladium  vs.  GraniteShares Platinum Trust

abrdn Physical Palladium

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days abrdn Physical Palladium has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Etf's essential indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the ETF venture institutional investors.

GraniteShares Platinum

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GraniteShares Platinum Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Pair Trading with Abrdn Physical and GraniteShares Platinum

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

The idea behind abrdn Physical Palladium and GraniteShares Platinum Trust 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.