Correlation Between Sino Platinum and Zhejiang Yayi
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By analyzing existing cross correlation between Sino Platinum Metals Co and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Sino Platinum and Zhejiang Yayi 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 Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Zhejiang Yayi.
Diversification Opportunities for Sino Platinum and Zhejiang Yayi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sino and Zhejiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Sino Platinum i.e., Sino Platinum and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Sino Platinum and Zhejiang Yayi
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to under-perform the Zhejiang Yayi. But the stock apears to be less risky and, when comparing its historical volatility, Sino Platinum Metals Co is 1.41 times less risky than Zhejiang Yayi. The stock trades about -0.07 of its potential returns per unit of risk. The Zhejiang Yayi Metal is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,450 in Zhejiang Yayi Metal on September 4, 2024 and sell it today you would earn a total of 295.00 from holding Zhejiang Yayi Metal or generate 12.04% 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. Zhejiang Yayi Metal
Performance |
| Timeline |
| Sino Platinum Metals |
| Zhejiang Yayi Metal |
Sino Platinum and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Zhejiang Yayi
The main advantage of trading using opposite Sino Platinum and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Zhejiang Yayi 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 Yayi will offset losses from the drop in Zhejiang Yayi'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 |
| Zhejiang Yayi vs. Industrial and Commercial | Zhejiang Yayi vs. Agricultural Bank of | Zhejiang Yayi vs. China Construction Bank | Zhejiang Yayi vs. Bank of China |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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