Correlation Between Sino Platinum and New China
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sino Platinum Metals Co and New China Life, you can compare the effects of market volatilities on Sino Platinum and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and New China.
Diversification Opportunities for Sino Platinum and New China
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sino and New is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Sino Platinum i.e., Sino Platinum and New China go up and down completely randomly.
Pair Corralation between Sino Platinum and New China
Assuming the 90 days trading horizon Sino Platinum is expected to generate 4.63 times less return on investment than New China. But when comparing it to its historical volatility, Sino Platinum Metals Co is 1.23 times less risky than New China. It trades about 0.02 of its potential returns per unit of risk. New China Life is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,825 in New China Life on October 18, 2024 and sell it today you would earn a total of 1,776 from holding New China Life or generate 62.87% 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. New China Life
Performance |
| Timeline |
| Sino Platinum Metals |
| New China Life |
Sino Platinum and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and New China
The main advantage of trading using opposite Sino Platinum and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| Sino Platinum vs. Bomesc Offshore Engineering | Sino Platinum vs. Guangzhou Restaurants Group | Sino Platinum vs. Hubei Yingtong Telecommunication | Sino Platinum vs. Guangzhou Haige Communications |
| New China vs. Sino Platinum Metals Co | New China vs. Chongqing Shunbo Aluminum | New China vs. Guangzhou Seagull Kitchen | New China vs. Tianshan Aluminum Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |