Correlation Between Sino Platinum and Heilongjiang Transport
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By analyzing existing cross correlation between Sino Platinum Metals Co and Heilongjiang Transport Development, you can compare the effects of market volatilities on Sino Platinum and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Heilongjiang Transport.
Diversification Opportunities for Sino Platinum and Heilongjiang Transport
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sino and Heilongjiang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Sino Platinum i.e., Sino Platinum and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Sino Platinum and Heilongjiang Transport
Assuming the 90 days trading horizon Sino Platinum is expected to generate 1.55 times less return on investment than Heilongjiang Transport. But when comparing it to its historical volatility, Sino Platinum Metals Co is 1.6 times less risky than Heilongjiang Transport. It trades about 0.02 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 428.00 in Heilongjiang Transport Development on September 14, 2024 and sell it today you would lose (4.00) from holding Heilongjiang Transport Development or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Sino Platinum Metals |
| Heilongjiang Transport |
Sino Platinum and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Heilongjiang Transport
The main advantage of trading using opposite Sino Platinum and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport'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 |
| Heilongjiang Transport vs. Industrial and Commercial | Heilongjiang Transport vs. Kweichow Moutai Co | Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. China Mobile Limited |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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