Correlation Between CEOTRONICS and Platinum Investment

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

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

Diversification Opportunities for CEOTRONICS and Platinum Investment

0.22

Correlation Coefficient

CEOTRONICS  Platinum Investment

Modest diversification

The 3 months correlation between CEOTRONICS and Platinum is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding CEOTRONICS and Platinum Investment Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Investment and CEOTRONICS 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 CEOTRONICS are associated (or correlated) with Platinum Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Investment has no effect on the direction of CEOTRONICS i.e., CEOTRONICS and Platinum Investment go up and down completely randomly.

Pair Corralation between CEOTRONICS and Platinum Investment

Assuming the 90 days trading horizon CEOTRONICS is expected to under-perform the Platinum Investment. But the stock apears to be less risky and, when comparing its historical volatility, CEOTRONICS is 1.11 times less risky than Platinum Investment. The stock trades about -0.03 of its potential returns per unit of risk. The Platinum Investment Management is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  30.00  in Platinum Investment Management on April 23, 2025 and sell it today you would earn a total of  5.00  from holding Platinum Investment Management or generate 16.67% return on investment over 90 days.

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

CEOTRONICS  vs.  Platinum Investment Management

CEOTRONICS

Risk-Adjusted Performance

Very Weak

Over the last 90 days CEOTRONICS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Platinum Investment

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Platinum Investment Management are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Platinum Investment reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CEOTRONICS and Platinum Investment

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

The idea behind CEOTRONICS and Platinum Investment Management 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..