Correlation Between Sino Platinum and Zhejiang Huatong
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By analyzing existing cross correlation between Sino Platinum Metals Co and Zhejiang Huatong Meat, you can compare the effects of market volatilities on Sino Platinum and Zhejiang Huatong 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 Zhejiang Huatong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Zhejiang Huatong.
Diversification Opportunities for Sino Platinum and Zhejiang Huatong
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sino and Zhejiang is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Zhejiang Huatong Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huatong Meat 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 Zhejiang Huatong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huatong Meat has no effect on the direction of Sino Platinum i.e., Sino Platinum and Zhejiang Huatong go up and down completely randomly.
Pair Corralation between Sino Platinum and Zhejiang Huatong
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to under-perform the Zhejiang Huatong. But the stock apears to be less risky and, when comparing its historical volatility, Sino Platinum Metals Co is 3.65 times less risky than Zhejiang Huatong. The stock trades about -0.11 of its potential returns per unit of risk. The Zhejiang Huatong Meat is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,266 in Zhejiang Huatong Meat on September 25, 2024 and sell it today you would earn a total of 19.00 from holding Zhejiang Huatong Meat or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. Zhejiang Huatong Meat
Performance |
| Timeline |
| Sino Platinum Metals |
| Zhejiang Huatong Meat |
Sino Platinum and Zhejiang Huatong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Zhejiang Huatong
The main advantage of trading using opposite Sino Platinum and Zhejiang Huatong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Zhejiang Huatong 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 Zhejiang Huatong will offset losses from the drop in Zhejiang Huatong's long position.| Sino Platinum vs. Zijin Mining Group | Sino Platinum vs. Wanhua Chemical Group | Sino Platinum vs. Baoshan Iron Steel | Sino Platinum vs. Shandong Gold Mining |
| Zhejiang Huatong vs. Ming Yang Smart | Zhejiang Huatong vs. 159681 | Zhejiang Huatong vs. 159005 | Zhejiang Huatong vs. Loctek Ergonomic Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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