Correlation Between Sino Platinum and Shanghai Pudong
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By analyzing existing cross correlation between Sino Platinum Metals Co and Shanghai Pudong Development, you can compare the effects of market volatilities on Sino Platinum and Shanghai Pudong 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 Shanghai Pudong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Shanghai Pudong.
Diversification Opportunities for Sino Platinum and Shanghai Pudong
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sino and Shanghai is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Shanghai Pudong Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pudong Deve 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 Shanghai Pudong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pudong Deve has no effect on the direction of Sino Platinum i.e., Sino Platinum and Shanghai Pudong go up and down completely randomly.
Pair Corralation between Sino Platinum and Shanghai Pudong
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to under-perform the Shanghai Pudong. In addition to that, Sino Platinum is 1.14 times more volatile than Shanghai Pudong Development. It trades about -0.1 of its total potential returns per unit of risk. Shanghai Pudong Development is currently generating about 0.07 per unit of volatility. If you would invest 963.00 in Shanghai Pudong Development on September 14, 2024 and sell it today you would earn a total of 19.00 from holding Shanghai Pudong Development or generate 1.97% 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. Shanghai Pudong Development
Performance |
| Timeline |
| Sino Platinum Metals |
| Shanghai Pudong Deve |
Sino Platinum and Shanghai Pudong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Shanghai Pudong
The main advantage of trading using opposite Sino Platinum and Shanghai Pudong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Shanghai Pudong 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 Shanghai Pudong will offset losses from the drop in Shanghai Pudong'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 |
| Shanghai Pudong vs. Qingdao Foods Co | Shanghai Pudong vs. Guangdong Wens Foodstuff | Shanghai Pudong vs. Beijing Sanyuan Foods | Shanghai Pudong vs. Gan Yuan Foods |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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