Correlation Between Sino Platinum and Peoples Insurance
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By analyzing existing cross correlation between Sino Platinum Metals Co and Peoples Insurance of, you can compare the effects of market volatilities on Sino Platinum and Peoples Insurance 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 Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Peoples Insurance.
Diversification Opportunities for Sino Platinum and Peoples Insurance
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sino and Peoples is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance 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 Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance has no effect on the direction of Sino Platinum i.e., Sino Platinum and Peoples Insurance go up and down completely randomly.
Pair Corralation between Sino Platinum and Peoples Insurance
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to generate 0.8 times more return on investment than Peoples Insurance. However, Sino Platinum Metals Co is 1.25 times less risky than Peoples Insurance. It trades about -0.02 of its potential returns per unit of risk. Peoples Insurance of is currently generating about -0.09 per unit of risk. If you would invest 1,407 in Sino Platinum Metals Co on August 25, 2024 and sell it today you would lose (14.00) from holding Sino Platinum Metals Co or give up 1.0% 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. Peoples Insurance of
Performance |
| Timeline |
| Sino Platinum Metals |
| Peoples Insurance |
Sino Platinum and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Peoples Insurance
The main advantage of trading using opposite Sino Platinum and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Peoples Insurance 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 Peoples Insurance will offset losses from the drop in Peoples Insurance's long position.| Sino Platinum vs. Zijin Mining Group | Sino Platinum vs. Wanhua Chemical Group | Sino Platinum vs. Shandong Gold Mining | Sino Platinum vs. Inner Mongolia BaoTou |
| Peoples Insurance vs. Chongqing Shunbo Aluminum | Peoples Insurance vs. Sino Platinum Metals Co | Peoples Insurance vs. Western Metal Materials | Peoples Insurance vs. Hefei Metalforming Mach |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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