Correlation Between Sino Platinum and Sinocat Environmental
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By analyzing existing cross correlation between Sino Platinum Metals Co and Sinocat Environmental Technology, you can compare the effects of market volatilities on Sino Platinum and Sinocat Environmental 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 Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Sinocat Environmental.
Diversification Opportunities for Sino Platinum and Sinocat Environmental
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sino and Sinocat is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental 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 Sinocat Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocat Environmental has no effect on the direction of Sino Platinum i.e., Sino Platinum and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Sino Platinum and Sinocat Environmental
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to generate 0.3 times more return on investment than Sinocat Environmental. However, Sino Platinum Metals Co is 3.38 times less risky than Sinocat Environmental. It trades about -0.1 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about -0.04 per unit of risk. If you would invest 1,446 in Sino Platinum Metals Co on October 22, 2024 and sell it today you would lose (83.00) from holding Sino Platinum Metals Co or give up 5.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Sino Platinum Metals Co vs. Sinocat Environmental Technolo
Performance |
| Timeline |
| Sino Platinum Metals |
| Sinocat Environmental |
Sino Platinum and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Platinum and Sinocat Environmental
The main advantage of trading using opposite Sino Platinum and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Sinocat Environmental 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 Sinocat Environmental will offset losses from the drop in Sinocat Environmental's long position.| Sino Platinum vs. Changjiang Publishing Media | Sino Platinum vs. Time Publishing and | Sino Platinum vs. Zhejiang Publishing Media | Sino Platinum vs. Shanghai Rightongene Biotechnology |
| Sinocat Environmental vs. Xilong Chemical Co | Sinocat Environmental vs. Oppein Home Group | Sinocat Environmental vs. Shandong Homey Aquatic | Sinocat Environmental vs. Hunan Mendale Hometextile |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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