Correlation Between Impala Platinum and Angel Gold

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

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

Diversification Opportunities for Impala Platinum and Angel Gold

0.0

Correlation Coefficient

Impala Platinum  Angel Gold

Pay attention - limited upside

The 3 months correlation between Impala and Angel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Impala Platinum Holdings and Angel Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Gold Corp and Impala Platinum 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 Impala Platinum Holdings are associated (or correlated) with Angel Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Gold Corp has no effect on the direction of Impala Platinum i.e., Impala Platinum and Angel Gold go up and down completely randomly.

Pair Corralation between Impala Platinum and Angel Gold

If you would invest  468.00  in Impala Platinum Holdings on February 4, 2024 and sell it today you would earn a total of  0.00  from holding Impala Platinum Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Impala Platinum Holdings  vs.  Angel Gold Corp

Impala Platinum Holdings

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Impala Platinum Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Impala Platinum showed solid returns over the last few months and may actually be approaching a breakup point.

Angel Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Impala Platinum and Angel Gold

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

The idea behind Impala Platinum Holdings and Angel Gold Corp 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.