Correlation Between Sino Platinum and Changchun
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By analyzing existing cross correlation between Sino Platinum Metals Co and Changchun UP Optotech, you can compare the effects of market volatilities on Sino Platinum and Changchun 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 Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Changchun.
Diversification Opportunities for Sino Platinum and Changchun
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sino and Changchun is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech 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 Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Sino Platinum i.e., Sino Platinum and Changchun go up and down completely randomly.
Pair Corralation between Sino Platinum and Changchun
Assuming the 90 days trading horizon Sino Platinum is expected to generate 5.39 times less return on investment than Changchun. But when comparing it to its historical volatility, Sino Platinum Metals Co is 1.78 times less risky than Changchun. It trades about 0.02 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,287 in Changchun UP Optotech on September 14, 2024 and sell it today you would earn a total of 1,007 from holding Changchun UP Optotech or generate 30.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. Changchun UP Optotech
Performance |
| Timeline |
| Sino Platinum Metals |
| Changchun UP Optotech |
Sino Platinum and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Changchun
The main advantage of trading using opposite Sino Platinum and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun'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 |
| Changchun vs. China Life Insurance | Changchun vs. Cinda Securities Co | Changchun vs. Piotech Inc A | Changchun vs. Dongxing Sec 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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