Correlation Between Sino Platinum and Shanghai Yanpu
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By analyzing existing cross correlation between Sino Platinum Metals Co and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Sino Platinum and Shanghai Yanpu 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 Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Shanghai Yanpu.
Diversification Opportunities for Sino Platinum and Shanghai Yanpu
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sino and Shanghai is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu Metal 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 Shanghai Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of Sino Platinum i.e., Sino Platinum and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Sino Platinum and Shanghai Yanpu
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to under-perform the Shanghai Yanpu. But the stock apears to be less risky and, when comparing its historical volatility, Sino Platinum Metals Co is 1.62 times less risky than Shanghai Yanpu. The stock trades about -0.01 of its potential returns per unit of risk. The Shanghai Yanpu Metal is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,704 in Shanghai Yanpu Metal on October 7, 2024 and sell it today you would lose (55.00) from holding Shanghai Yanpu Metal or give up 1.48% of portfolio value 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. Shanghai Yanpu Metal
Performance |
| Timeline |
| Sino Platinum Metals |
| Shanghai Yanpu Metal |
Sino Platinum and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Shanghai Yanpu
The main advantage of trading using opposite Sino Platinum and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Shanghai Yanpu 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 Shanghai Yanpu will offset losses from the drop in Shanghai Yanpu's long position.| Sino Platinum vs. Kangxin New Materials | Sino Platinum vs. Guangzhou Zhujiang Brewery | Sino Platinum vs. Western Metal Materials | Sino Platinum vs. Jiangsu Financial Leasing |
| Shanghai Yanpu vs. Agricultural Bank of | Shanghai Yanpu vs. Postal Savings Bank | Shanghai Yanpu vs. Gansu Jiu Steel | Shanghai Yanpu vs. Shandong Mining Machinery |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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