Correlation Between Sino Platinum and Finework New
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By analyzing existing cross correlation between Sino Platinum Metals Co and Finework New Energy, you can compare the effects of market volatilities on Sino Platinum and Finework New 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 Finework New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Finework New.
Diversification Opportunities for Sino Platinum and Finework New
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sino and Finework is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Finework New Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finework New Energy 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 Finework New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finework New Energy has no effect on the direction of Sino Platinum i.e., Sino Platinum and Finework New go up and down completely randomly.
Pair Corralation between Sino Platinum and Finework New
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to generate 0.42 times more return on investment than Finework New. However, Sino Platinum Metals Co is 2.37 times less risky than Finework New. It trades about 0.01 of its potential returns per unit of risk. Finework New Energy is currently generating about -0.01 per unit of risk. If you would invest 1,418 in Sino Platinum Metals Co on September 4, 2024 and sell it today you would earn a total of 1.00 from holding Sino Platinum Metals Co or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 74.63% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. Finework New Energy
Performance |
| Timeline |
| Sino Platinum Metals |
| Finework New Energy |
Sino Platinum and Finework New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Finework New
The main advantage of trading using opposite Sino Platinum and Finework New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Finework New 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 Finework New will offset losses from the drop in Finework New'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 |
| Finework New vs. Northking Information Technology | Finework New vs. Jinhe Biotechnology Co | Finework New vs. Niutech Environment Technology | Finework New vs. Saurer Intelligent 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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