Correlation Between Zijin Mining and Sino-Platinum Metals
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By analyzing existing cross correlation between Zijin Mining Group and Sino Platinum Metals Co, you can compare the effects of market volatilities on Zijin Mining and Sino-Platinum Metals 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 Zijin Mining with a short position of Sino-Platinum Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Sino-Platinum Metals.
Diversification Opportunities for Zijin Mining and Sino-Platinum Metals
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and Sino-Platinum is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group 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 Zijin Mining 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 Zijin Mining Group are associated (or correlated) with Sino-Platinum Metals. 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 Zijin Mining i.e., Zijin Mining and Sino-Platinum Metals go up and down completely randomly.
Pair Corralation between Zijin Mining and Sino-Platinum Metals
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 1.37 times more return on investment than Sino-Platinum Metals. However, Zijin Mining is 1.37 times more volatile than Sino Platinum Metals Co. It trades about 0.15 of its potential returns per unit of risk. Sino Platinum Metals Co is currently generating about 0.11 per unit of risk. If you would invest 1,557 in Zijin Mining Group on November 4, 2024 and sell it today you would earn a total of 67.00 from holding Zijin Mining Group or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Sino Platinum Metals Co
Performance |
| Timeline |
| Zijin Mining Group |
| Sino Platinum Metals |
Zijin Mining and Sino-Platinum Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Sino-Platinum Metals
The main advantage of trading using opposite Zijin Mining and Sino-Platinum Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Sino-Platinum Metals 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 Metals will offset losses from the drop in Sino-Platinum Metals' long position.| Zijin Mining vs. Chengdu Xingrong Investment | Zijin Mining vs. Metro Investment Development | Zijin Mining vs. Hubei Geoway Investment | Zijin Mining vs. Linewell Software Co |
| Sino-Platinum Metals vs. Guangzhou Jointas Chemical | Sino-Platinum Metals vs. Aba Chemicals Corp | Sino-Platinum Metals vs. Guizhou Chanhen Chemical | Sino-Platinum Metals vs. Porton Fine Chemicals |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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