Correlation Between Sinocat Environmental and Sino Platinum
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By analyzing existing cross correlation between Sinocat Environmental Technology and Sino Platinum Metals Co, you can compare the effects of market volatilities on Sinocat Environmental 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 Sinocat Environmental with a short position of Sino Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Sino Platinum.
Diversification Opportunities for Sinocat Environmental and Sino Platinum
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sinocat and Sino is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo 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 Sinocat Environmental 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 Sinocat Environmental Technology 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 Sinocat Environmental i.e., Sinocat Environmental and Sino Platinum go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Sino Platinum
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to under-perform the Sino Platinum. In addition to that, Sinocat Environmental is 1.86 times more volatile than Sino Platinum Metals Co. It trades about -0.01 of its total potential returns per unit of risk. Sino Platinum Metals Co is currently generating about -0.01 per unit of volatility. If you would invest 1,560 in Sino Platinum Metals Co on October 7, 2024 and sell it today you would lose (218.00) from holding Sino Platinum Metals Co or give up 13.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocat Environmental Technolo vs. Sino Platinum Metals Co
Performance |
| Timeline |
| Sinocat Environmental |
| Sino Platinum Metals |
Sinocat Environmental and Sino Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and Sino Platinum
The main advantage of trading using opposite Sinocat Environmental and Sino Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental 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.| Sinocat Environmental vs. Agricultural Bank of | Sinocat Environmental vs. Postal Savings Bank | Sinocat Environmental vs. Gansu Jiu Steel | Sinocat Environmental vs. Shandong Mining Machinery |
| Sino Platinum vs. Kangxin New Materials | Sino Platinum vs. Guangzhou Zhujiang Brewery | Sino Platinum vs. Western Metal Materials | Sino Platinum vs. Jiangsu Financial Leasing |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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