Correlation Between Rongcheer Industrial and Sino Platinum
Specify exactly 2 symbols:
By analyzing existing cross correlation between Rongcheer Industrial Technology and Sino Platinum Metals Co, you can compare the effects of market volatilities on Rongcheer Industrial 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 Rongcheer Industrial with a short position of Sino Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rongcheer Industrial and Sino Platinum.
Diversification Opportunities for Rongcheer Industrial and Sino Platinum
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Rongcheer and Sino is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Rongcheer Industrial Technolog 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 Rongcheer Industrial 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 Rongcheer Industrial Technology 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 Rongcheer Industrial i.e., Rongcheer Industrial and Sino Platinum go up and down completely randomly.
Pair Corralation between Rongcheer Industrial and Sino Platinum
Assuming the 90 days trading horizon Rongcheer Industrial Technology is expected to generate 1.97 times more return on investment than Sino Platinum. However, Rongcheer Industrial is 1.97 times more volatile than Sino Platinum Metals Co. It trades about 0.06 of its potential returns per unit of risk. Sino Platinum Metals Co is currently generating about -0.13 per unit of risk. If you would invest 5,752 in Rongcheer Industrial Technology on September 13, 2024 and sell it today you would earn a total of 158.00 from holding Rongcheer Industrial Technology or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rongcheer Industrial Technolog vs. Sino Platinum Metals Co
Performance |
| Timeline |
| Rongcheer Industrial |
| Sino Platinum Metals |
Rongcheer Industrial and Sino Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rongcheer Industrial and Sino Platinum
The main advantage of trading using opposite Rongcheer Industrial and Sino Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rongcheer Industrial 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.| Rongcheer Industrial vs. Industrial and Commercial | Rongcheer Industrial vs. Kweichow Moutai Co | Rongcheer Industrial vs. Agricultural Bank of | Rongcheer Industrial vs. China Mobile Limited |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |