Correlation Between Sino Platinum and National Silicon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sino Platinum Metals Co and National Silicon Industry, you can compare the effects of market volatilities on Sino Platinum and National Silicon 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 National Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and National Silicon.
Diversification Opportunities for Sino Platinum and National Silicon
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sino and National is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and National Silicon Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Silicon Industry 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 National Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Silicon Industry has no effect on the direction of Sino Platinum i.e., Sino Platinum and National Silicon go up and down completely randomly.
Pair Corralation between Sino Platinum and National Silicon
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to generate 0.5 times more return on investment than National Silicon. However, Sino Platinum Metals Co is 1.98 times less risky than National Silicon. It trades about -0.14 of its potential returns per unit of risk. National Silicon Industry is currently generating about -0.21 per unit of risk. If you would invest 1,404 in Sino Platinum Metals Co on October 25, 2024 and sell it today you would lose (55.00) from holding Sino Platinum Metals Co or give up 3.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. National Silicon Industry
Performance |
| Timeline |
| Sino Platinum Metals |
| National Silicon Industry |
Sino Platinum and National Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and National Silicon
The main advantage of trading using opposite Sino Platinum and National Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, National Silicon 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 National Silicon will offset losses from the drop in National Silicon'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 |
| National Silicon vs. Heilongjiang Publishing Media | National Silicon vs. Xinjiang Communications Construction | National Silicon vs. Jilin Jlu Communication | National Silicon vs. Threes Company Media |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stocks Directory Find actively traded stocks across global markets |