Correlation Between Platinum Group and IB Acquisition

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

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

Diversification Opportunities for Platinum Group and IB Acquisition

-0.12

Correlation Coefficient

Platinum Group  IB Acquisition

Good diversification

The 3 months correlation between Platinum and IBAC is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Group Metals and IB Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IB Acquisition Corp and Platinum Group 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 Group Metals are associated (or correlated) with IB Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IB Acquisition Corp has no effect on the direction of Platinum Group i.e., Platinum Group and IB Acquisition go up and down completely randomly.

Pair Corralation between Platinum Group and IB Acquisition

Considering the 90-day investment horizon Platinum Group Metals is expected to generate 27.36 times more return on investment than IB Acquisition. However, Platinum Group is 27.36 times more volatile than IB Acquisition Corp. It trades about 0.13 of its potential returns per unit of risk. IB Acquisition Corp is currently generating about -0.08 per unit of risk. If you would invest  179.00  in Platinum Group Metals on September 16, 2025 and sell it today you would earn a total of  80.00  from holding Platinum Group Metals or generate 44.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.92%
Values	Daily Returns

Platinum Group Metals  vs.  IB Acquisition Corp

Platinum Group Metals

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Platinum Group Metals are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak essential indicators, Platinum Group reported solid returns over the last few months and may actually be approaching a breakup point.

IB Acquisition Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days IB Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, IB Acquisition is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Platinum Group and IB Acquisition

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

The idea behind Platinum Group Metals and IB Acquisition 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.

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.