Correlation Between China Securities and Sino Platinum
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By analyzing existing cross correlation between China Securities 800 and Sino Platinum Metals Co, you can compare the effects of market volatilities on China Securities and Sino Platinum 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 China Securities with a short position of Sino Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Sino Platinum.
Diversification Opportunities for China Securities and Sino Platinum
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Sino is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Sino Platinum Metals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Platinum Metals and China Securities 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 China Securities 800 are associated (or correlated) with Sino Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Platinum Metals has no effect on the direction of China Securities i.e., China Securities and Sino Platinum go up and down completely randomly.
Pair Corralation between China Securities and Sino Platinum
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.83 times more return on investment than Sino Platinum. However, China Securities 800 is 1.21 times less risky than Sino Platinum. It trades about 0.04 of its potential returns per unit of risk. Sino Platinum Metals Co is currently generating about -0.02 per unit of risk. If you would invest 392,014 in China Securities 800 on August 25, 2024 and sell it today you would earn a total of 25,538 from holding China Securities 800 or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Sino Platinum Metals Co
Performance |
| Timeline |
China Securities and Sino Platinum Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Sino Platinum Metals Co
Pair trading matchups for Sino Platinum
Pair Trading with China Securities and Sino Platinum
The main advantage of trading using opposite China Securities and Sino Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Sino Platinum 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 Sino Platinum will offset losses from the drop in Sino Platinum's long position.| China Securities vs. Yuan Longping High tech | China Securities vs. Saurer Intelligent Technology | China Securities vs. Fujian Rongji Software | China Securities vs. Jinhui Liquor Co |
| Sino Platinum vs. Fujian Newland Computer | Sino Platinum vs. Zhejiang JIULI Hi tech | Sino Platinum vs. Guangzhou Haige Communications | Sino Platinum vs. Sunny Loan Top |
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 CEOs Directory module to screen CEOs from public companies around the world.
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