Correlation Between Guangdong Jingyi and Sino Platinum
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Sino Platinum Metals Co, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of Sino Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Sino Platinum.
Diversification Opportunities for Guangdong Jingyi and Sino Platinum
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Sino is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal 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 Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and Sino Platinum go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Sino Platinum
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.5 times more return on investment than Sino Platinum. However, Guangdong Jingyi is 1.5 times more volatile than Sino Platinum Metals Co. It trades about 0.02 of its potential returns per unit of risk. Sino Platinum Metals Co is currently generating about 0.01 per unit of risk. If you would invest 694.00 in Guangdong Jingyi Metal on September 3, 2024 and sell it today you would earn a total of 42.00 from holding Guangdong Jingyi Metal or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Sino Platinum Metals Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Sino Platinum Metals |
Guangdong Jingyi and Sino Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Sino Platinum
The main advantage of trading using opposite Guangdong Jingyi and Sino Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical Co | Guangdong Jingyi vs. Hoshine Silicon Ind |
| Sino Platinum vs. Zijin Mining Group | Sino Platinum vs. Baoshan Iron Steel | Sino Platinum vs. Rongsheng Petrochemical Co | Sino Platinum vs. Hoshine Silicon Ind |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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