Correlation Between Sino-Platinum Metals and Dalian Thermal
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By analyzing existing cross correlation between Sino Platinum Metals Co and Dalian Thermal Power, you can compare the effects of market volatilities on Sino-Platinum Metals and Dalian Thermal 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 Metals with a short position of Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino-Platinum Metals and Dalian Thermal.
Diversification Opportunities for Sino-Platinum Metals and Dalian Thermal
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sino-Platinum and Dalian is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power and Sino-Platinum Metals 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 Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of Sino-Platinum Metals i.e., Sino-Platinum Metals and Dalian Thermal go up and down completely randomly.
Pair Corralation between Sino-Platinum Metals and Dalian Thermal
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to generate 0.44 times more return on investment than Dalian Thermal. However, Sino Platinum Metals Co is 2.29 times less risky than Dalian Thermal. It trades about 0.04 of its potential returns per unit of risk. Dalian Thermal Power is currently generating about -0.01 per unit of risk. If you would invest 1,283 in Sino Platinum Metals Co on November 3, 2024 and sell it today you would earn a total of 89.00 from holding Sino Platinum Metals Co or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. Dalian Thermal Power
Performance |
| Timeline |
| Sino Platinum Metals |
| Dalian Thermal Power |
Sino-Platinum Metals and Dalian Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino-Platinum Metals and Dalian Thermal
The main advantage of trading using opposite Sino-Platinum Metals and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino-Platinum Metals position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal's long position.| Sino-Platinum Metals vs. V V Food | Sino-Platinum Metals vs. UCloud Technology Co | Sino-Platinum Metals vs. Suzhou Weizhixiang Food | Sino-Platinum Metals vs. Guangzhou KingTeller Technology |
| Dalian Thermal vs. Zhejiang Publishing Media | Dalian Thermal vs. Time Publishing and | Dalian Thermal vs. Heilongjiang Publishing Media | Dalian Thermal vs. CSSC Offshore Marine |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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