Correlation Between Sino Platinum and Beijing Wantai
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By analyzing existing cross correlation between Sino Platinum Metals Co and Beijing Wantai Biological, you can compare the effects of market volatilities on Sino Platinum and Beijing Wantai 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 Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Beijing Wantai.
Diversification Opportunities for Sino Platinum and Beijing Wantai
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sino and Beijing is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological 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 Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Sino Platinum i.e., Sino Platinum and Beijing Wantai go up and down completely randomly.
Pair Corralation between Sino Platinum and Beijing Wantai
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to under-perform the Beijing Wantai. But the stock apears to be less risky and, when comparing its historical volatility, Sino Platinum Metals Co is 1.07 times less risky than Beijing Wantai. The stock trades about -0.2 of its potential returns per unit of risk. The Beijing Wantai Biological is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,500 in Beijing Wantai Biological on September 12, 2024 and sell it today you would earn a total of 165.00 from holding Beijing Wantai Biological or generate 2.2% 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. Beijing Wantai Biological
Performance |
| Timeline |
| Sino Platinum Metals |
| Beijing Wantai Biological |
Sino Platinum and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Beijing Wantai
The main advantage of trading using opposite Sino Platinum and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai'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 |
| Beijing Wantai vs. Ningbo Ligong Online | Beijing Wantai vs. Shenzhen Silver Basis | Beijing Wantai vs. Easyhome New Retail | Beijing Wantai vs. Luolai Home Textile |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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