Correlation Between Platinum and Asia Sermkij

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

By analyzing existing cross correlation between The Platinum Group and Asia Sermkij Leasing, you can compare the effects of market volatilities on Platinum and Asia Sermkij 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 Platinum with a short position of Asia Sermkij. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum and Asia Sermkij.

Diversification Opportunities for Platinum and Asia Sermkij

0.45

Correlation Coefficient

Platinum  Asia Sermkij

Very weak diversification

The 3 months correlation between Platinum and Asia is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding The Platinum Group and Asia Sermkij Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Sermkij Leasing and Platinum 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 The Platinum Group are associated (or correlated) with Asia Sermkij. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Sermkij Leasing has no effect on the direction of Platinum i.e., Platinum and Asia Sermkij go up and down completely randomly.

Pair Corralation between Platinum and Asia Sermkij

Assuming the 90 days trading horizon The Platinum Group is expected to under-perform the Asia Sermkij. But the stock apears to be less risky and, when comparing its historical volatility, The Platinum Group is 1.2 times less risky than Asia Sermkij. The stock trades about -0.27 of its potential returns per unit of risk. The Asia Sermkij Leasing is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest  985.00  in Asia Sermkij Leasing on December 30, 2024 and sell it today you would lose (285.00) from holding Asia Sermkij Leasing or give up 28.93% of portfolio value over 90 days.

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

The Platinum Group  vs.  Asia Sermkij Leasing

Platinum Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Platinum Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Asia Sermkij Leasing

Risk-Adjusted Performance

Very Weak

Over the last 90 days Asia Sermkij Leasing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Platinum and Asia Sermkij

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

The idea behind The Platinum Group and Asia Sermkij Leasing 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.