Correlation Between South32 and Jubilee Platinum

Can any of the company-specific risk be diversified away by investing in both South32 and Jubilee 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 South32 and Jubilee Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between South32 and Jubilee Platinum, you can compare the effects of market volatilities on South32 and Jubilee 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 South32 with a short position of Jubilee Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of South32 and Jubilee Platinum.

Diversification Opportunities for South32 and Jubilee Platinum

0.0

Correlation Coefficient

South32  Jubilee Platinum

Pay attention - limited upside

The 3 months correlation between South32 and Jubilee is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding South32 and Jubilee Platinum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jubilee Platinum and South32 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 South32 are associated (or correlated) with Jubilee Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jubilee Platinum has no effect on the direction of South32 i.e., South32 and Jubilee Platinum go up and down completely randomly.

Pair Corralation between South32 and Jubilee Platinum

If you would invest  0.00  in Jubilee Platinum on October 12, 2024 and sell it today you would earn a total of  0.00  from holding Jubilee Platinum or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

South32  vs.  Jubilee Platinum

South32

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days South32 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Jubilee Platinum

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jubilee Platinum has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Jubilee Platinum is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with South32 and Jubilee Platinum

The main advantage of trading using opposite South32 and Jubilee Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if South32 position performs unexpectedly, Jubilee 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 Jubilee Platinum will offset losses from the drop in Jubilee Platinum's long position.

The idea behind South32 and Jubilee Platinum 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.

Check out your portfolio center.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.