Correlation Between Baoshan Iron and Sino-Platinum Metals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Baoshan Iron Steel and Sino Platinum Metals Co, you can compare the effects of market volatilities on Baoshan Iron 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 Baoshan Iron with a short position of Sino-Platinum Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Sino-Platinum Metals.
Diversification Opportunities for Baoshan Iron and Sino-Platinum Metals
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Baoshan and Sino-Platinum is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel 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 Baoshan Iron 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 Baoshan Iron Steel 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 Baoshan Iron i.e., Baoshan Iron and Sino-Platinum Metals go up and down completely randomly.
Pair Corralation between Baoshan Iron and Sino-Platinum Metals
Assuming the 90 days trading horizon Baoshan Iron is expected to generate 1.09 times less return on investment than Sino-Platinum Metals. In addition to that, Baoshan Iron is 1.5 times more volatile than Sino Platinum Metals Co. It trades about 0.07 of its total potential returns per unit of risk. Sino Platinum Metals Co is currently generating about 0.11 per unit of volatility. If you would invest 1,342 in Sino Platinum Metals Co on November 4, 2024 and sell it today you would earn a total of 30.00 from holding Sino Platinum Metals Co or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baoshan Iron Steel vs. Sino Platinum Metals Co
Performance |
| Timeline |
| Baoshan Iron Steel |
| Sino Platinum Metals |
Baoshan Iron and Sino-Platinum Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and Sino-Platinum Metals
The main advantage of trading using opposite Baoshan Iron and Sino-Platinum Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron 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.| Baoshan Iron vs. Senci Electric Machinery | Baoshan Iron vs. Allied Machinery Co | Baoshan Iron vs. Anhui Huaren Health | Baoshan Iron vs. Lotus Health Group |
| Sino-Platinum Metals vs. Guangzhou Jointas Chemical | Sino-Platinum Metals vs. Aba Chemicals Corp | Sino-Platinum Metals vs. Guizhou Chanhen Chemical | Sino-Platinum Metals vs. Porton Fine Chemicals |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |