Correlation Between Bio Rad and Platinum Investment

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

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

Diversification Opportunities for Bio Rad and Platinum Investment

0.15

Correlation Coefficient

Bio Rad  Platinum Investment

Average diversification

The 3 months correlation between Bio and Platinum is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories and Platinum Investment Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Investment and Bio Rad 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 Bio Rad Laboratories 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 Bio Rad i.e., Bio Rad and Platinum Investment go up and down completely randomly.

Pair Corralation between Bio Rad and Platinum Investment

Considering the 90-day investment horizon Bio Rad Laboratories is expected to generate 0.81 times more return on investment than Platinum Investment. However, Bio Rad Laboratories is 1.23 times less risky than Platinum Investment. It trades about 0.1 of its potential returns per unit of risk. Platinum Investment Management is currently generating about 0.04 per unit of risk. If you would invest  24,019  in Bio Rad Laboratories on May 3, 2025 and sell it today you would earn a total of  4,441  from holding Bio Rad Laboratories or generate 18.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.38%
Values	Daily Returns

Bio Rad Laboratories  vs.  Platinum Investment Management

Bio Rad Laboratories

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bio Rad Laboratories are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Bio Rad displayed solid returns over the last few months and may actually be approaching a breakup point.

Platinum Investment

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Platinum Investment Management are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Platinum Investment may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Bio Rad and Platinum Investment

The main advantage of trading using opposite Bio Rad and Platinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Rad 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 Bio Rad Laboratories 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.