Correlation Between Sino Platinum and Shenzhen Hifuture
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By analyzing existing cross correlation between Sino Platinum Metals Co and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Sino Platinum and Shenzhen Hifuture 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 Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Shenzhen Hifuture.
Diversification Opportunities for Sino Platinum and Shenzhen Hifuture
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sino and Shenzhen is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture 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 Shenzhen Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Sino Platinum i.e., Sino Platinum and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Sino Platinum and Shenzhen Hifuture
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to under-perform the Shenzhen Hifuture. But the stock apears to be less risky and, when comparing its historical volatility, Sino Platinum Metals Co is 1.61 times less risky than Shenzhen Hifuture. The stock trades about -0.07 of its potential returns per unit of risk. The Shenzhen Hifuture Electric is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 234.00 in Shenzhen Hifuture Electric on September 5, 2024 and sell it today you would earn a total of 51.00 from holding Shenzhen Hifuture Electric or generate 21.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Sino Platinum Metals |
| Shenzhen Hifuture |
Sino Platinum and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Shenzhen Hifuture
The main advantage of trading using opposite Sino Platinum and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Shenzhen Hifuture 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 Shenzhen Hifuture will offset losses from the drop in Shenzhen Hifuture'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 |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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