Correlation Between Sino Platinum and Shaanxi Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sino Platinum Metals Co and Shaanxi Energy Investment, you can compare the effects of market volatilities on Sino Platinum and Shaanxi Energy 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 Sino Platinum with a short position of Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Shaanxi Energy.
Diversification Opportunities for Sino Platinum and Shaanxi Energy
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sino and Shaanxi is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy Investment and Sino Platinum 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 Sino Platinum Metals Co are associated (or correlated) with Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Sino Platinum i.e., Sino Platinum and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Sino Platinum and Shaanxi Energy
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to generate 1.1 times more return on investment than Shaanxi Energy. However, Sino Platinum is 1.1 times more volatile than Shaanxi Energy Investment. It trades about 0.13 of its potential returns per unit of risk. Shaanxi Energy Investment is currently generating about 0.05 per unit of risk. If you would invest 1,205 in Sino Platinum Metals Co on September 4, 2024 and sell it today you would earn a total of 214.00 from holding Sino Platinum Metals Co or generate 17.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. Shaanxi Energy Investment
Performance |
| Timeline |
| Sino Platinum Metals |
| Shaanxi Energy Investment |
Sino Platinum and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Shaanxi Energy
The main advantage of trading using opposite Sino Platinum and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Shaanxi Energy 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.| Sino Platinum vs. Zijin Mining Group | Sino Platinum vs. Wanhua Chemical Group | Sino Platinum vs. Baoshan Iron Steel | Sino Platinum vs. Rongsheng Petrochemical Co |
| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. Xinjiang Communications Construction | Shaanxi Energy vs. Sino Platinum Metals Co | Shaanxi Energy vs. China Citic Bank |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |