Correlation Between Kuangda Technology and Sino Platinum
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By analyzing existing cross correlation between Kuangda Technology Group and Sino Platinum Metals Co, you can compare the effects of market volatilities on Kuangda Technology 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 Kuangda Technology with a short position of Sino Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Sino Platinum.
Diversification Opportunities for Kuangda Technology and Sino Platinum
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuangda and Sino is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group 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 Kuangda Technology 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 Kuangda Technology Group 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 Kuangda Technology i.e., Kuangda Technology and Sino Platinum go up and down completely randomly.
Pair Corralation between Kuangda Technology and Sino Platinum
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 1.36 times more return on investment than Sino Platinum. However, Kuangda Technology is 1.36 times more volatile than Sino Platinum Metals Co. 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 486.00 in Kuangda Technology Group on September 14, 2024 and sell it today you would earn a total of 97.00 from holding Kuangda Technology Group or generate 19.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Sino Platinum Metals Co
Performance |
| Timeline |
| Kuangda Technology |
| Sino Platinum Metals |
Kuangda Technology and Sino Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Sino Platinum
The main advantage of trading using opposite Kuangda Technology and Sino Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology 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.| Kuangda Technology vs. Nanjing Putian Telecommunications | Kuangda Technology vs. Tianjin Realty Development | Kuangda Technology vs. Kangyue Technology Co | Kuangda Technology vs. Shenzhen Hifuture Electric |
| Sino Platinum vs. Zijin Mining Group | Sino Platinum vs. Wanhua Chemical Group | Sino Platinum vs. Baoshan Iron Steel | Sino Platinum vs. Rongsheng Petrochemical Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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