Correlation Between Sino Platinum and Zijin Mining
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By analyzing existing cross correlation between Sino Platinum Metals Co and Zijin Mining Group, you can compare the effects of market volatilities on Sino Platinum and Zijin Mining 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 Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Zijin Mining.
Diversification Opportunities for Sino Platinum and Zijin Mining
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sino and Zijin is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining Group 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 Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of Sino Platinum i.e., Sino Platinum and Zijin Mining go up and down completely randomly.
Pair Corralation between Sino Platinum and Zijin Mining
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to generate 1.03 times more return on investment than Zijin Mining. However, Sino Platinum is 1.03 times more volatile than Zijin Mining Group. It trades about -0.02 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.17 per unit of risk. If you would invest 1,419 in Sino Platinum Metals Co on September 1, 2024 and sell it today you would lose (15.00) from holding Sino Platinum Metals Co or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. Zijin Mining Group
Performance |
| Timeline |
| Sino Platinum Metals |
| Zijin Mining Group |
Sino Platinum and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Zijin Mining
The main advantage of trading using opposite Sino Platinum and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Zijin Mining 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 Zijin Mining will offset losses from the drop in Zijin Mining's long position.| Sino Platinum vs. Zijin Mining Group | Sino Platinum vs. Wanhua Chemical Group | Sino Platinum vs. Baoshan Iron Steel | Sino Platinum vs. Shandong Gold Mining |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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