Correlation Between Abrdn Physical and GraniteShares Platinum

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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 Silver 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

0.91
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Abrdn and GraniteShares is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding abrdn Physical Silver 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 Silver 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 Silver is expected to generate 1.17 times more return on investment than GraniteShares Platinum. However, Abrdn Physical is 1.17 times more volatile than GraniteShares Platinum Trust. It trades about 0.04 of its potential returns per unit of risk. GraniteShares Platinum Trust is currently generating about 0.0 per unit of risk. If you would invest  2,138  in abrdn Physical Silver on October 27, 2024 and sell it today you would earn a total of  784.00  from holding abrdn Physical Silver or generate 36.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

abrdn Physical Silver  vs.  GraniteShares Platinum Trust

 Performance 
       Timeline  
abrdn Physical Silver 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days abrdn Physical Silver has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest conflicting performance, the Etf's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the ETF retail investors.
GraniteShares Platinum 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.

Abrdn Physical and GraniteShares Platinum Volatility Contrast

   Predicted Return Density   
       Returns  

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 Silver 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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