Correlation Between Sino Platinum and Wuhan Yangtze
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By analyzing existing cross correlation between Sino Platinum Metals Co and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Sino Platinum and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Wuhan Yangtze.
Diversification Opportunities for Sino Platinum and Wuhan Yangtze
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sino and Wuhan is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Sino Platinum i.e., Sino Platinum and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Sino Platinum and Wuhan Yangtze
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to under-perform the Wuhan Yangtze. But the stock apears to be less risky and, when comparing its historical volatility, Sino Platinum Metals Co is 1.97 times less risky than Wuhan Yangtze. The stock trades about -0.01 of its potential returns per unit of risk. The Wuhan Yangtze Communication is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,838 in Wuhan Yangtze Communication on November 1, 2024 and sell it today you would earn a total of 455.00 from holding Wuhan Yangtze Communication or generate 24.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. Wuhan Yangtze Communication
Performance |
| Timeline |
| Sino Platinum Metals |
| Wuhan Yangtze Commun |
Sino Platinum and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Wuhan Yangtze
The main advantage of trading using opposite Sino Platinum and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.| Sino Platinum vs. Fiberhome Telecommunication Technologies | Sino Platinum vs. AUPU Home Style | Sino Platinum vs. Luolai Home Textile | Sino Platinum vs. Hainan Mining Co |
| Wuhan Yangtze vs. Jiaozuo Wanfang Aluminum | Wuhan Yangtze vs. Nanjing Putian Telecommunications | Wuhan Yangtze vs. Sino Platinum Metals Co | Wuhan Yangtze vs. Jilin Jlu Communication |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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