Correlation Between SI-TECH Information and Sino-Platinum Metals
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By analyzing existing cross correlation between SI TECH Information Technology and Sino Platinum Metals Co, you can compare the effects of market volatilities on SI-TECH Information and Sino-Platinum Metals 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 SI-TECH Information with a short position of Sino-Platinum Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SI-TECH Information and Sino-Platinum Metals.
Diversification Opportunities for SI-TECH Information and Sino-Platinum Metals
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SI-TECH and Sino-Platinum is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding SI TECH Information Technology 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 SI-TECH Information 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 SI TECH Information Technology are associated (or correlated) with Sino-Platinum Metals. 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 SI-TECH Information i.e., SI-TECH Information and Sino-Platinum Metals go up and down completely randomly.
Pair Corralation between SI-TECH Information and Sino-Platinum Metals
Assuming the 90 days trading horizon SI TECH Information Technology is expected to generate 4.52 times more return on investment than Sino-Platinum Metals. However, SI-TECH Information is 4.52 times more volatile than Sino Platinum Metals Co. It trades about 0.25 of its potential returns per unit of risk. Sino Platinum Metals Co is currently generating about 0.06 per unit of risk. If you would invest 996.00 in SI TECH Information Technology on November 7, 2024 and sell it today you would earn a total of 234.00 from holding SI TECH Information Technology or generate 23.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SI TECH Information Technology vs. Sino Platinum Metals Co
Performance |
| Timeline |
| SI TECH Information |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sino Platinum Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SI-TECH Information and Sino-Platinum Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SI-TECH Information and Sino-Platinum Metals
The main advantage of trading using opposite SI-TECH Information and Sino-Platinum Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SI-TECH Information position performs unexpectedly, Sino-Platinum Metals 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 Metals will offset losses from the drop in Sino-Platinum Metals' long position.The idea behind SI TECH Information Technology and Sino Platinum Metals Co 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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