Correlation Between Platinum Asset and Retail Food

Can any of the company-specific risk be diversified away by investing in both Platinum Asset and Retail Food 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 Retail Food 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 Retail Food Group, you can compare the effects of market volatilities on Platinum Asset and Retail Food 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 Retail Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asset and Retail Food.

Diversification Opportunities for Platinum Asset and Retail Food

-0.21

Correlation Coefficient

Platinum Asset  Retail Food

Very good diversification

The 3 months correlation between Platinum and Retail is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asset Management and Retail Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Food Group 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 Retail Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Food Group has no effect on the direction of Platinum Asset i.e., Platinum Asset and Retail Food go up and down completely randomly.

Pair Corralation between Platinum Asset and Retail Food

Assuming the 90 days trading horizon Platinum Asset Management is expected to under-perform the Retail Food. But the stock apears to be less risky and, when comparing its historical volatility, Platinum Asset Management is 1.23 times less risky than Retail Food. The stock trades about -0.4 of its potential returns per unit of risk. The Retail Food Group is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  176.00  in Retail Food Group on April 3, 2025 and sell it today you would earn a total of  24.00  from holding Retail Food Group or generate 13.64% return on investment over 90 days.

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

Platinum Asset Management  vs.  Retail Food Group

Platinum Asset Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Platinum Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Retail Food Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Retail Food Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Retail Food may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Platinum Asset and Retail Food

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

The idea behind Platinum Asset Management and Retail Food Group 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.