Correlation Between Shandong Gold and Sino Platinum
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By analyzing existing cross correlation between Shandong Gold Mining and Sino Platinum Metals Co, you can compare the effects of market volatilities on Shandong Gold and Sino Platinum 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 Shandong Gold with a short position of Sino Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Sino Platinum.
Diversification Opportunities for Shandong Gold and Sino Platinum
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shandong and Sino is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Sino Platinum Metals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Platinum Metals and Shandong Gold 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 Shandong Gold Mining are associated (or correlated) with Sino Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Platinum Metals has no effect on the direction of Shandong Gold i.e., Shandong Gold and Sino Platinum go up and down completely randomly.
Pair Corralation between Shandong Gold and Sino Platinum
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 1.08 times more return on investment than Sino Platinum. However, Shandong Gold is 1.08 times more volatile than Sino Platinum Metals Co. It trades about 0.03 of its potential returns per unit of risk. Sino Platinum Metals Co is currently generating about 0.0 per unit of risk. If you would invest 2,088 in Shandong Gold Mining on August 25, 2024 and sell it today you would earn a total of 435.00 from holding Shandong Gold Mining or generate 20.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Sino Platinum Metals Co
Performance |
| Timeline |
| Shandong Gold Mining |
| Sino Platinum Metals |
Shandong Gold and Sino Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Sino Platinum
The main advantage of trading using opposite Shandong Gold and Sino Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Sino Platinum 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 Sino Platinum will offset losses from the drop in Sino Platinum's long position.| Shandong Gold vs. Xian International Medical | Shandong Gold vs. Lutian Machinery Co | Shandong Gold vs. Shaanxi Construction Machinery | Shandong Gold vs. Ningbo Construction Co |
| Sino Platinum vs. Fujian Newland Computer | Sino Platinum vs. Zhejiang JIULI Hi tech | Sino Platinum vs. Guangzhou Haige Communications | Sino Platinum vs. Sunny Loan Top |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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