Correlation Between Sino Platinum and Bank of Communications
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By analyzing existing cross correlation between Sino Platinum Metals Co and Bank of Communications, you can compare the effects of market volatilities on Sino Platinum and Bank of Communications 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 Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Bank of Communications.
Diversification Opportunities for Sino Platinum and Bank of Communications
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sino and Bank is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications 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 Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of Sino Platinum i.e., Sino Platinum and Bank of Communications go up and down completely randomly.
Pair Corralation between Sino Platinum and Bank of Communications
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to generate 0.88 times more return on investment than Bank of Communications. However, Sino Platinum Metals Co is 1.13 times less risky than Bank of Communications. It trades about -0.09 of its potential returns per unit of risk. Bank of Communications is currently generating about -0.24 per unit of risk. If you would invest 1,407 in Sino Platinum Metals Co on October 30, 2024 and sell it today you would lose (35.00) from holding Sino Platinum Metals Co or give up 2.49% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sino Platinum Metals Co vs. Bank of Communications
Performance |
Timeline |
Sino Platinum Metals |
Bank of Communications |
Sino Platinum and Bank of Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sino Platinum and Bank of Communications
The main advantage of trading using opposite Sino Platinum and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.Sino Platinum vs. Tongding Interconnection Information | Sino Platinum vs. Sharetronic Data Technology | Sino Platinum vs. Hygon Information Technology | Sino Platinum vs. Bonree Data Technology |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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