Correlation Between Zhejiang Publishing and Sino Platinum
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By analyzing existing cross correlation between Zhejiang Publishing Media and Sino Platinum Metals Co, you can compare the effects of market volatilities on Zhejiang Publishing 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 Zhejiang Publishing with a short position of Sino Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and Sino Platinum.
Diversification Opportunities for Zhejiang Publishing and Sino Platinum
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and Sino is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media 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 Zhejiang Publishing 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 Zhejiang Publishing Media 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 Zhejiang Publishing i.e., Zhejiang Publishing and Sino Platinum go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and Sino Platinum
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to under-perform the Sino Platinum. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Publishing Media is 1.03 times less risky than Sino Platinum. The stock trades about -0.38 of its potential returns per unit of risk. The Sino Platinum Metals Co is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,384 in Sino Platinum Metals Co on October 22, 2024 and sell it today you would lose (8.00) from holding Sino Platinum Metals Co or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Publishing Media vs. Sino Platinum Metals Co
Performance |
| Timeline |
| Zhejiang Publishing Media |
| Sino Platinum Metals |
Zhejiang Publishing and Sino Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and Sino Platinum
The main advantage of trading using opposite Zhejiang Publishing and Sino Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing 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.| Zhejiang Publishing vs. CICT Mobile Communication | Zhejiang Publishing vs. Harbin Air Conditioning | Zhejiang Publishing vs. Nanjing Putian Telecommunications | Zhejiang Publishing vs. China Asset Management |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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