Correlation Between Sino Platinum and China Railway
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By analyzing existing cross correlation between Sino Platinum Metals Co and China Railway Construction, you can compare the effects of market volatilities on Sino Platinum and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and China Railway.
Diversification Opportunities for Sino Platinum and China Railway
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sino and China is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of Sino Platinum i.e., Sino Platinum and China Railway go up and down completely randomly.
Pair Corralation between Sino Platinum and China Railway
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to generate 0.97 times more return on investment than China Railway. However, Sino Platinum Metals Co is 1.03 times less risky than China Railway. It trades about -0.14 of its potential returns per unit of risk. China Railway Construction is currently generating about -0.43 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 | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. China Railway Construction
Performance |
| Timeline |
| Sino Platinum Metals |
| China Railway Constr |
Sino Platinum and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and China Railway
The main advantage of trading using opposite Sino Platinum and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway'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 |
| China Railway vs. Omnijoi Media Corp | China Railway vs. Shuhua Sports Co | China Railway vs. Hangzhou Guotai Environmental | China Railway vs. Elite Color Environmental |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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