Correlation Between Panther Metals and Booking Holdings

Can any of the company-specific risk be diversified away by investing in both Panther Metals and Booking Holdings 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 Panther Metals and Booking Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Panther Metals and Booking Holdings

0.13

Correlation Coefficient

Panther Metals  Booking Holdings

Average diversification

The 3 months correlation between Panther and Booking is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and Booking Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Booking Holdings and Panther Metals 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 Panther Metals PLC are associated (or correlated) with Booking Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Booking Holdings has no effect on the direction of Panther Metals i.e., Panther Metals and Booking Holdings go up and down completely randomly.

Pair Corralation between Panther Metals and Booking Holdings

Assuming the 90 days trading horizon Panther Metals PLC is expected to under-perform the Booking Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Panther Metals PLC is 3.09 times less risky than Booking Holdings. The stock trades about -0.11 of its potential returns per unit of risk. The Booking Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  434,525  in Booking Holdings on October 25, 2024 and sell it today you would earn a total of  26,961  from holding Booking Holdings or generate 6.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Panther Metals PLC  vs.  Booking Holdings

Panther Metals PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Panther Metals PLC 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 basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Booking Holdings

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Booking Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Booking Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Panther Metals and Booking Holdings

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

The idea behind Panther Metals PLC and Booking 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.