Correlation Between Sino Platinum and Hefei Metalforming
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By analyzing existing cross correlation between Sino Platinum Metals Co and Hefei Metalforming Mach, you can compare the effects of market volatilities on Sino Platinum and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Hefei Metalforming.
Diversification Opportunities for Sino Platinum and Hefei Metalforming
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sino and Hefei is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Sino Platinum i.e., Sino Platinum and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Sino Platinum and Hefei Metalforming
Assuming the 90 days trading horizon Sino Platinum is expected to generate 3.77 times less return on investment than Hefei Metalforming. But when comparing it to its historical volatility, Sino Platinum Metals Co is 1.88 times less risky than Hefei Metalforming. It trades about 0.02 of its potential returns per unit of risk. Hefei Metalforming Mach is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 738.00 in Hefei Metalforming Mach on September 14, 2024 and sell it today you would earn a total of 93.00 from holding Hefei Metalforming Mach or generate 12.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. Hefei Metalforming Mach
Performance |
| Timeline |
| Sino Platinum Metals |
| Hefei Metalforming Mach |
Sino Platinum and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Hefei Metalforming
The main advantage of trading using opposite Sino Platinum and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming'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 |
| Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. Kweichow Moutai Co | Hefei Metalforming vs. Agricultural Bank of | Hefei Metalforming 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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