Correlation Between Sino Platinum and Contemporary Amperex
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By analyzing existing cross correlation between Sino Platinum Metals Co and Contemporary Amperex Technology, you can compare the effects of market volatilities on Sino Platinum and Contemporary Amperex 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 Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Contemporary Amperex.
Diversification Opportunities for Sino Platinum and Contemporary Amperex
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sino and Contemporary is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex 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 Contemporary Amperex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contemporary Amperex has no effect on the direction of Sino Platinum i.e., Sino Platinum and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Sino Platinum and Contemporary Amperex
Assuming the 90 days trading horizon Sino Platinum is expected to generate 3.06 times less return on investment than Contemporary Amperex. But when comparing it to its historical volatility, Sino Platinum Metals Co is 1.36 times less risky than Contemporary Amperex. It trades about 0.01 of its potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 21,353 in Contemporary Amperex Technology on September 13, 2024 and sell it today you would earn a total of 5,357 from holding Contemporary Amperex Technology or generate 25.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Sino Platinum Metals |
| Contemporary Amperex |
Sino Platinum and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Contemporary Amperex
The main advantage of trading using opposite Sino Platinum and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Contemporary Amperex 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 Contemporary Amperex will offset losses from the drop in Contemporary Amperex'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 |
| Contemporary Amperex vs. Hubei Dinglong Chemical | Contemporary Amperex vs. Sino Platinum Metals Co | Contemporary Amperex vs. Hainan Mining Co | Contemporary Amperex vs. Xinjiang Baodi Mining |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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