Correlation Between Sino Platinum and Guangzhou KingTeller
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By analyzing existing cross correlation between Sino Platinum Metals Co and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Sino Platinum and Guangzhou KingTeller 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 Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Guangzhou KingTeller.
Diversification Opportunities for Sino Platinum and Guangzhou KingTeller
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sino and Guangzhou is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller 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 Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Sino Platinum i.e., Sino Platinum and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Sino Platinum and Guangzhou KingTeller
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to generate 0.23 times more return on investment than Guangzhou KingTeller. However, Sino Platinum Metals Co is 4.42 times less risky than Guangzhou KingTeller. It trades about -0.24 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about -0.29 per unit of risk. If you would invest 1,419 in Sino Platinum Metals Co on October 11, 2024 and sell it today you would lose (77.00) from holding Sino Platinum Metals Co or give up 5.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Sino Platinum Metals |
| Guangzhou KingTeller |
Sino Platinum and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Guangzhou KingTeller
The main advantage of trading using opposite Sino Platinum and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| Sino Platinum vs. Xinhua Winshare Publishing | Sino Platinum vs. Anhui Transport Consulting | Sino Platinum vs. Shanghai Action Education | Sino Platinum vs. Dymatic Chemicals |
| Guangzhou KingTeller vs. China Aluminum International | Guangzhou KingTeller vs. Tianshan Aluminum Group | Guangzhou KingTeller vs. Inspur Software Co | Guangzhou KingTeller vs. Sino Platinum Metals 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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