Correlation Between Platinum Asset and Djerriwarrh Investments

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

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

Diversification Opportunities for Platinum Asset and Djerriwarrh Investments

0.08

Correlation Coefficient

Platinum Asset  Djerriwarrh Investments

Significant diversification

The 3 months correlation between Platinum and Djerriwarrh is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asset Management and Djerriwarrh Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Djerriwarrh Investments and Platinum Asset 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 Asset Management are associated (or correlated) with Djerriwarrh Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Djerriwarrh Investments has no effect on the direction of Platinum Asset i.e., Platinum Asset and Djerriwarrh Investments go up and down completely randomly.

Pair Corralation between Platinum Asset and Djerriwarrh Investments

Assuming the 90 days trading horizon Platinum Asset Management is expected to generate 4.36 times more return on investment than Djerriwarrh Investments. However, Platinum Asset is 4.36 times more volatile than Djerriwarrh Investments. It trades about 0.07 of its potential returns per unit of risk. Djerriwarrh Investments is currently generating about 0.13 per unit of risk. If you would invest  56.00  in Platinum Asset Management on April 25, 2025 and sell it today you would earn a total of  8.00  from holding Platinum Asset Management or generate 14.29% return on investment over 90 days.

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

Platinum Asset Management  vs.  Djerriwarrh Investments

Platinum Asset Management

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Platinum Asset Management are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain primary indicators, Platinum Asset unveiled solid returns over the last few months and may actually be approaching a breakup point.

Djerriwarrh Investments

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Djerriwarrh Investments are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Djerriwarrh Investments may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Platinum Asset and Djerriwarrh Investments

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

The idea behind Platinum Asset Management and Djerriwarrh Investments 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.