Correlation Between Hygon Information and Sino-Platinum Metals
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By analyzing existing cross correlation between Hygon Information Technology and Sino Platinum Metals Co, you can compare the effects of market volatilities on Hygon Information 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 Hygon Information with a short position of Sino-Platinum Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and Sino-Platinum Metals.
Diversification Opportunities for Hygon Information and Sino-Platinum Metals
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hygon and Sino-Platinum is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology 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 Hygon Information 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 Hygon Information Technology 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 Hygon Information i.e., Hygon Information and Sino-Platinum Metals go up and down completely randomly.
Pair Corralation between Hygon Information and Sino-Platinum Metals
Assuming the 90 days trading horizon Hygon Information Technology is expected to under-perform the Sino-Platinum Metals. In addition to that, Hygon Information is 3.06 times more volatile than Sino Platinum Metals Co. It trades about -0.06 of its total potential returns per unit of risk. Sino Platinum Metals Co is currently generating about 0.06 per unit of volatility. If you would invest 1,356 in Sino Platinum Metals Co on November 7, 2024 and sell it today you would earn a total of 16.00 from holding Sino Platinum Metals Co or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hygon Information Technology vs. Sino Platinum Metals Co
Performance |
| Timeline |
| Hygon Information |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sino Platinum Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hygon Information and Sino-Platinum Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hygon Information and Sino-Platinum Metals
The main advantage of trading using opposite Hygon Information and Sino-Platinum Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information 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.The idea behind Hygon Information Technology and Sino Platinum Metals Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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