Correlation Between Aluminum Corp and Sino Platinum
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By analyzing existing cross correlation between Aluminum Corp of and Sino Platinum Metals Co, you can compare the effects of market volatilities on Aluminum Corp 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 Aluminum Corp with a short position of Sino Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Sino Platinum.
Diversification Opportunities for Aluminum Corp and Sino Platinum
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aluminum and Sino is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of 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 Aluminum Corp 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 Aluminum Corp of 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 Aluminum Corp i.e., Aluminum Corp and Sino Platinum go up and down completely randomly.
Pair Corralation between Aluminum Corp and Sino Platinum
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Sino Platinum. In addition to that, Aluminum Corp is 1.07 times more volatile than Sino Platinum Metals Co. It trades about -0.02 of its total potential returns per unit of risk. Sino Platinum Metals Co is currently generating about -0.02 per unit of volatility. If you would invest 1,419 in Sino Platinum Metals Co on September 1, 2024 and sell it today you would lose (15.00) from holding Sino Platinum Metals Co or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Sino Platinum Metals Co
Performance |
| Timeline |
| Aluminum Corp |
| Sino Platinum Metals |
Aluminum Corp and Sino Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Sino Platinum
The main advantage of trading using opposite Aluminum Corp and Sino Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp 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.| Aluminum Corp vs. AVIC Fund Management | Aluminum Corp vs. Lutian Machinery Co | Aluminum Corp vs. Allied Machinery Co | Aluminum Corp vs. Anhui Huilong Agricultural |
| Sino Platinum vs. Zijin Mining Group | Sino Platinum vs. Wanhua Chemical Group | Sino Platinum vs. Baoshan Iron Steel | Sino Platinum vs. Shandong Gold 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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