Correlation Between Sino Platinum and Dawning Information
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By analyzing existing cross correlation between Sino Platinum Metals Co and Dawning Information Industry, you can compare the effects of market volatilities on Sino Platinum and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Dawning Information.
Diversification Opportunities for Sino Platinum and Dawning Information
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sino and Dawning is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Sino Platinum i.e., Sino Platinum and Dawning Information go up and down completely randomly.
Pair Corralation between Sino Platinum and Dawning Information
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to under-perform the Dawning Information. But the stock apears to be less risky and, when comparing its historical volatility, Sino Platinum Metals Co is 2.88 times less risky than Dawning Information. The stock trades about -0.03 of its potential returns per unit of risk. The Dawning Information Industry is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5,460 in Dawning Information Industry on October 24, 2024 and sell it today you would earn a total of 1,065 from holding Dawning Information Industry or generate 19.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. Dawning Information Industry
Performance |
| Timeline |
| Sino Platinum Metals |
| Dawning Information |
Sino Platinum and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Dawning Information
The main advantage of trading using opposite Sino Platinum and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Sino Platinum vs. Sichuan Jinshi Technology | Sino Platinum vs. Qtone Education Group | Sino Platinum vs. Wuhan Yangtze Communication | Sino Platinum vs. Shanghai Action Education |
| Dawning Information vs. Rising Nonferrous Metals | Dawning Information vs. Great Sun Foods Co | Dawning Information vs. Anji Foodstuff Co | Dawning Information vs. Sino Platinum Metals 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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