Correlation Between Sino Platinum and Agricultural Bank
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By analyzing existing cross correlation between Sino Platinum Metals Co and Agricultural Bank of, you can compare the effects of market volatilities on Sino Platinum and Agricultural Bank 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Platinum and Agricultural Bank.
Diversification Opportunities for Sino Platinum and Agricultural Bank
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sino and Agricultural is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Sino Platinum Metals Co and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Sino Platinum i.e., Sino Platinum and Agricultural Bank go up and down completely randomly.
Pair Corralation between Sino Platinum and Agricultural Bank
Assuming the 90 days trading horizon Sino Platinum Metals Co is expected to under-perform the Agricultural Bank. But the stock apears to be less risky and, when comparing its historical volatility, Sino Platinum Metals Co is 1.09 times less risky than Agricultural Bank. The stock trades about -0.05 of its potential returns per unit of risk. The Agricultural Bank of is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 473.00 in Agricultural Bank of on September 24, 2024 and sell it today you would earn a total of 31.00 from holding Agricultural Bank of or generate 6.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sino Platinum Metals Co vs. Agricultural Bank of
Performance |
Timeline |
Sino Platinum Metals |
Agricultural Bank |
Sino Platinum and Agricultural Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sino Platinum and Agricultural Bank
The main advantage of trading using opposite Sino Platinum and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Platinum position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.Sino Platinum vs. Changchun Faway Automobile | Sino Platinum vs. Haima Automobile Group | Sino Platinum vs. Dazhong Transportation Group | Sino Platinum vs. China Sports Industry |
Agricultural Bank vs. Guocheng Mining Co | Agricultural Bank vs. Sino Platinum Metals Co | Agricultural Bank vs. Guangdong Jinma Entertainment | Agricultural Bank vs. Shenyang Huitian Thermal |
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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