Correlation Between Vox Royalty and Platinum Group

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

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

Diversification Opportunities for Vox Royalty and Platinum Group

0.59

Correlation Coefficient

Vox Royalty  Platinum Group

Very weak diversification

The 3 months correlation between Vox and Platinum is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Vox Royalty Corp and Platinum Group Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Group Metals and Vox Royalty 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 Vox Royalty Corp are associated (or correlated) with Platinum Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Group Metals has no effect on the direction of Vox Royalty i.e., Vox Royalty and Platinum Group go up and down completely randomly.

Pair Corralation between Vox Royalty and Platinum Group

Given the investment horizon of 90 days Vox Royalty Corp is expected to generate 0.43 times more return on investment than Platinum Group. However, Vox Royalty Corp is 2.31 times less risky than Platinum Group. It trades about -0.03 of its potential returns per unit of risk. Platinum Group Metals is currently generating about -0.01 per unit of risk. If you would invest  262.00  in Vox Royalty Corp on September 30, 2024 and sell it today you would lose (27.00) from holding Vox Royalty Corp or give up 10.31% of portfolio value over 90 days.

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

Vox Royalty Corp  vs.  Platinum Group Metals

Vox Royalty Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vox Royalty Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Platinum Group Metals

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Platinum Group Metals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Platinum Group is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Vox Royalty and Platinum Group

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

The idea behind Vox Royalty Corp and Platinum Group Metals 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.