Correlation Between Platinum Investment and Easy Software

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

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

Diversification Opportunities for Platinum Investment and Easy Software

-0.04

Correlation Coefficient

Platinum Investment  Easy Software

Good diversification

The 3 months correlation between Platinum and Easy is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Investment Management and Easy Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easy Software AG and Platinum Investment 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 Platinum Investment Management are associated (or correlated) with Easy Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easy Software AG has no effect on the direction of Platinum Investment i.e., Platinum Investment and Easy Software go up and down completely randomly.

Pair Corralation between Platinum Investment and Easy Software

Assuming the 90 days horizon Platinum Investment Management is expected to generate 1.78 times more return on investment than Easy Software. However, Platinum Investment is 1.78 times more volatile than Easy Software AG. It trades about 0.07 of its potential returns per unit of risk. Easy Software AG is currently generating about 0.06 per unit of risk. If you would invest  30.00  in Platinum Investment Management on April 22, 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 Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Platinum Investment Management  vs.  Easy Software AG

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.

Easy Software AG

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Easy Software AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Easy Software may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Platinum Investment and Easy Software

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

The idea behind Platinum Investment Management and Easy Software AG 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.