Correlation Between Jilin Chemical and Sanxiang Advanced
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By analyzing existing cross correlation between Jilin Chemical Fibre and Sanxiang Advanced Materials, you can compare the effects of market volatilities on Jilin Chemical and Sanxiang Advanced 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 Jilin Chemical with a short position of Sanxiang Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Sanxiang Advanced.
Diversification Opportunities for Jilin Chemical and Sanxiang Advanced
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jilin and Sanxiang is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Sanxiang Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanxiang Advanced and Jilin Chemical 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 Jilin Chemical Fibre are associated (or correlated) with Sanxiang Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanxiang Advanced has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Sanxiang Advanced go up and down completely randomly.
Pair Corralation between Jilin Chemical and Sanxiang Advanced
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the Sanxiang Advanced. But the stock apears to be less risky and, when comparing its historical volatility, Jilin Chemical Fibre is 1.31 times less risky than Sanxiang Advanced. The stock trades about -0.02 of its potential returns per unit of risk. The Sanxiang Advanced Materials is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 988.00 in Sanxiang Advanced Materials on October 16, 2024 and sell it today you would earn a total of 687.00 from holding Sanxiang Advanced Materials or generate 69.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. Sanxiang Advanced Materials
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Sanxiang Advanced |
Jilin Chemical and Sanxiang Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Sanxiang Advanced
The main advantage of trading using opposite Jilin Chemical and Sanxiang Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Sanxiang Advanced 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 Sanxiang Advanced will offset losses from the drop in Sanxiang Advanced's long position.| Jilin Chemical vs. Jinhui Mining Co | Jilin Chemical vs. Everjoy Health Group | Jilin Chemical vs. Shenyang Blue Silver | Jilin Chemical vs. Hainan Mining Co |
| Sanxiang Advanced vs. Zijin Mining Group | Sanxiang Advanced vs. Wanhua Chemical Group | Sanxiang Advanced vs. Baoshan Iron Steel | Sanxiang Advanced vs. Shandong Gold Mining |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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