Correlation Between Sino Platinum and Long Yuan
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By analyzing existing cross correlation between Sino Platinum Metals Co and Long Yuan Construction, you can compare the effects of market volatilities on Sino Platinum and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Long Yuan.
Diversification Opportunities for Sino Platinum and Long Yuan
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sino and Long is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of Sino Platinum i.e., Sino Platinum and Long Yuan go up and down completely randomly.
Pair Corralation between Sino Platinum and Long Yuan
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to generate 0.6 times more return on investment than Long Yuan. However, Sino Platinum Metals Co is 1.68 times less risky than Long Yuan. It trades about -0.02 of its potential returns per unit of risk. Long Yuan Construction is currently generating about -0.26 per unit of risk. If you would invest 1,384 in Sino Platinum Metals Co on October 22, 2024 and sell it today you would lose (8.00) from holding Sino Platinum Metals Co or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. Long Yuan Construction
Performance |
| Timeline |
| Sino Platinum Metals |
| Long Yuan Construction |
Sino Platinum and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Long Yuan
The main advantage of trading using opposite Sino Platinum and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.| Sino Platinum vs. Changjiang Publishing Media | Sino Platinum vs. Time Publishing and | Sino Platinum vs. Zhejiang Publishing Media | Sino Platinum vs. Shanghai Rightongene Biotechnology |
| Long Yuan vs. Guangzhou KingTeller Technology | Long Yuan vs. Luyin Investment Group | Long Yuan vs. Jiujiang Shanshui Technology | Long Yuan vs. HanS Laser Tech |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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