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 Platinum 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

1.0

Correlation Coefficient

Abrdn Physical  GraniteShares Platinum

No risk reduction

The 3 months correlation between Abrdn and GraniteShares is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding abrdn Physical Platinum 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 Platinum 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 is expected to generate 1.31 times less return on investment than GraniteShares Platinum. But when comparing it to its historical volatility, abrdn Physical Platinum is 1.01 times less risky than GraniteShares Platinum. It trades about 0.08 of its potential returns per unit of risk. GraniteShares Platinum Trust is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  905.00  in GraniteShares Platinum Trust on December 21, 2024 and sell it today you would earn a total of  60.00  from holding GraniteShares Platinum Trust or generate 6.63% return on investment over 90 days.

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

abrdn Physical Platinum  vs.  GraniteShares Platinum Trust

abrdn Physical Platinum

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in abrdn Physical Platinum are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable essential indicators, Abrdn Physical is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

GraniteShares Platinum

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GraniteShares Platinum Trust are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, GraniteShares Platinum may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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 Platinum 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.