Correlation Between Sino Platinum and Bangyan Technology
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By analyzing existing cross correlation between Sino Platinum Metals Co and Bangyan Technology Co, you can compare the effects of market volatilities on Sino Platinum and Bangyan Technology 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 Bangyan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Bangyan Technology.
Diversification Opportunities for Sino Platinum and Bangyan Technology
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sino and Bangyan is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Bangyan Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangyan Technology 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 Bangyan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangyan Technology has no effect on the direction of Sino Platinum i.e., Sino Platinum and Bangyan Technology go up and down completely randomly.
Pair Corralation between Sino Platinum and Bangyan Technology
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to generate 0.59 times more return on investment than Bangyan Technology. However, Sino Platinum Metals Co is 1.71 times less risky than Bangyan Technology. It trades about -0.01 of its potential returns per unit of risk. Bangyan Technology Co is currently generating about -0.02 per unit of risk. If you would invest 1,608 in Sino Platinum Metals Co on October 18, 2024 and sell it today you would lose (228.00) from holding Sino Platinum Metals Co or give up 14.18% 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. Bangyan Technology Co
Performance |
| Timeline |
| Sino Platinum Metals |
| Bangyan Technology |
Sino Platinum and Bangyan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Bangyan Technology
The main advantage of trading using opposite Sino Platinum and Bangyan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Bangyan Technology 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 Bangyan Technology will offset losses from the drop in Bangyan Technology's long position.| Sino Platinum vs. Jinhui Mining Co | Sino Platinum vs. Soyea Technology Co | Sino Platinum vs. JCHX Mining Management | Sino Platinum vs. Tibet Huayu Mining |
| Bangyan Technology vs. Shenzhen SDG Information | Bangyan Technology vs. Sino Platinum Metals Co | Bangyan Technology vs. Hainan Mining Co | Bangyan Technology vs. Anhui Tongguan Copper |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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