Correlation Between Sino Platinum and Tianjin Pengling
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sino Platinum Metals Co and Tianjin Pengling Rubber, you can compare the effects of market volatilities on Sino Platinum and Tianjin Pengling 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 Sino Platinum with a short position of Tianjin Pengling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Tianjin Pengling.
Diversification Opportunities for Sino Platinum and Tianjin Pengling
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sino and Tianjin is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Tianjin Pengling Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Pengling Rubber and Sino Platinum 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 Sino Platinum Metals Co are associated (or correlated) with Tianjin Pengling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Pengling Rubber has no effect on the direction of Sino Platinum i.e., Sino Platinum and Tianjin Pengling go up and down completely randomly.
Pair Corralation between Sino Platinum and Tianjin Pengling
Assuming the 90 days trading horizon Sino Platinum is expected to generate 3.58 times less return on investment than Tianjin Pengling. But when comparing it to its historical volatility, Sino Platinum Metals Co is 1.74 times less risky than Tianjin Pengling. It trades about 0.01 of its potential returns per unit of risk. Tianjin Pengling Rubber is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 544.00 in Tianjin Pengling Rubber on September 5, 2024 and sell it today you would lose (20.00) from holding Tianjin Pengling Rubber or give up 3.68% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Sino Platinum Metals Co vs. Tianjin Pengling Rubber
Performance |
Timeline |
Sino Platinum Metals |
Tianjin Pengling Rubber |
Sino Platinum and Tianjin Pengling Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sino Platinum and Tianjin Pengling
The main advantage of trading using opposite Sino Platinum and Tianjin Pengling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Tianjin Pengling 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 Tianjin Pengling will offset losses from the drop in Tianjin Pengling's long position.Sino Platinum vs. Zijin Mining Group | Sino Platinum vs. Wanhua Chemical Group | Sino Platinum vs. Baoshan Iron Steel | Sino Platinum vs. Rongsheng Petrochemical Co |
Tianjin Pengling vs. CICT Mobile Communication | Tianjin Pengling vs. Sinomach Automobile Co | Tianjin Pengling vs. Tongyu Communication | Tianjin Pengling vs. Dawning Information Industry |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |