Correlation Between Tibet Huayu and Sino Platinum
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By analyzing existing cross correlation between Tibet Huayu Mining and Sino Platinum Metals Co, you can compare the effects of market volatilities on Tibet Huayu 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 Tibet Huayu with a short position of Sino Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Sino Platinum.
Diversification Opportunities for Tibet Huayu and Sino Platinum
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tibet and Sino is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu 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 Tibet Huayu 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 Tibet Huayu 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 Tibet Huayu i.e., Tibet Huayu and Sino Platinum go up and down completely randomly.
Pair Corralation between Tibet Huayu and Sino Platinum
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 1.94 times more return on investment than Sino Platinum. However, Tibet Huayu is 1.94 times more volatile than Sino Platinum Metals Co. It trades about 0.06 of its potential returns per unit of risk. Sino Platinum Metals Co is currently generating about 0.02 per unit of risk. If you would invest 849.00 in Tibet Huayu Mining on October 18, 2024 and sell it today you would earn a total of 418.00 from holding Tibet Huayu Mining or generate 49.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Sino Platinum Metals Co
Performance |
| Timeline |
| Tibet Huayu Mining |
| Sino Platinum Metals |
Tibet Huayu and Sino Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Sino Platinum
The main advantage of trading using opposite Tibet Huayu and Sino Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu 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.| Tibet Huayu vs. New Hope Dairy | Tibet Huayu vs. China Asset Management | Tibet Huayu vs. Chengdu Spaceon Electronics | Tibet Huayu vs. Great Sun Foods Co |
| Sino Platinum vs. Jinhui Mining Co | Sino Platinum vs. Soyea Technology Co | Sino Platinum vs. JCHX Mining Management | Sino Platinum vs. Tibet Huayu Mining |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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