Correlation Between Heilongjiang Transport and Sino Platinum
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By analyzing existing cross correlation between Heilongjiang Transport Development and Sino Platinum Metals Co, you can compare the effects of market volatilities on Heilongjiang Transport 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 Heilongjiang Transport with a short position of Sino Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Sino Platinum.
Diversification Opportunities for Heilongjiang Transport and Sino Platinum
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heilongjiang and Sino is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop 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 Heilongjiang Transport 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 Heilongjiang Transport Development 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 Heilongjiang Transport i.e., Heilongjiang Transport and Sino Platinum go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Sino Platinum
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to generate 1.6 times more return on investment than Sino Platinum. However, Heilongjiang Transport is 1.6 times more volatile than Sino Platinum Metals Co. It trades about 0.02 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 428.00 in Heilongjiang Transport Development on September 14, 2024 and sell it today you would lose (4.00) from holding Heilongjiang Transport Development or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Sino Platinum Metals Co
Performance |
| Timeline |
| Heilongjiang Transport |
| Sino Platinum Metals |
Heilongjiang Transport and Sino Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Sino Platinum
The main advantage of trading using opposite Heilongjiang Transport and Sino Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport 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.| Heilongjiang Transport vs. Industrial and Commercial | Heilongjiang Transport vs. Kweichow Moutai Co | Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. China Mobile Limited |
| Sino Platinum vs. Zijin Mining Group | Sino Platinum vs. Wanhua Chemical Group | Sino Platinum vs. Baoshan Iron Steel | Sino Platinum vs. Rongsheng Petrochemical Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
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