Correlation Between Guangdong Sanhe and Xizi Clean
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By analyzing existing cross correlation between Guangdong Sanhe Pile and Xizi Clean Energy, you can compare the effects of market volatilities on Guangdong Sanhe and Xizi Clean 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 Guangdong Sanhe with a short position of Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Sanhe and Xizi Clean.
Diversification Opportunities for Guangdong Sanhe and Xizi Clean
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Xizi is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Sanhe Pile and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy and Guangdong Sanhe 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 Guangdong Sanhe Pile are associated (or correlated) with Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Guangdong Sanhe i.e., Guangdong Sanhe and Xizi Clean go up and down completely randomly.
Pair Corralation between Guangdong Sanhe and Xizi Clean
Assuming the 90 days trading horizon Guangdong Sanhe Pile is expected to generate 1.54 times more return on investment than Xizi Clean. However, Guangdong Sanhe is 1.54 times more volatile than Xizi Clean Energy. It trades about 0.21 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about -0.08 per unit of risk. If you would invest 645.00 in Guangdong Sanhe Pile on September 13, 2024 and sell it today you would earn a total of 90.00 from holding Guangdong Sanhe Pile or generate 13.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangdong Sanhe Pile vs. Xizi Clean Energy
Performance |
| Timeline |
| Guangdong Sanhe Pile |
| Xizi Clean Energy |
Guangdong Sanhe and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Sanhe and Xizi Clean
The main advantage of trading using opposite Guangdong Sanhe and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Sanhe position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| Guangdong Sanhe vs. Zijin Mining Group | Guangdong Sanhe vs. Wanhua Chemical Group | Guangdong Sanhe vs. Baoshan Iron Steel | Guangdong Sanhe vs. Shandong Gold Mining |
| Xizi Clean vs. Industrial and Commercial | Xizi Clean vs. Kweichow Moutai Co | Xizi Clean vs. Agricultural Bank of | Xizi Clean vs. China Mobile Limited |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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