Correlation Between Guangxi Wuzhou and Sanxiang Advanced
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Sanxiang Advanced Materials, you can compare the effects of market volatilities on Guangxi Wuzhou 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 Guangxi Wuzhou with a short position of Sanxiang Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Sanxiang Advanced.
Diversification Opportunities for Guangxi Wuzhou and Sanxiang Advanced
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangxi and Sanxiang is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Sanxiang Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanxiang Advanced and Guangxi Wuzhou 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 Guangxi Wuzhou Communications 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 Guangxi Wuzhou i.e., Guangxi Wuzhou and Sanxiang Advanced go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Sanxiang Advanced
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 2.27 times more return on investment than Sanxiang Advanced. However, Guangxi Wuzhou is 2.27 times more volatile than Sanxiang Advanced Materials. It trades about 0.09 of its potential returns per unit of risk. Sanxiang Advanced Materials is currently generating about 0.03 per unit of risk. If you would invest 426.00 in Guangxi Wuzhou Communications on October 14, 2024 and sell it today you would earn a total of 31.00 from holding Guangxi Wuzhou Communications or generate 7.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Sanxiang Advanced Materials
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Sanxiang Advanced |
Guangxi Wuzhou and Sanxiang Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Sanxiang Advanced
The main advantage of trading using opposite Guangxi Wuzhou and Sanxiang Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou 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.| Guangxi Wuzhou vs. Anhui Tongguan Copper | Guangxi Wuzhou vs. Guocheng Mining Co | Guangxi Wuzhou vs. Chengdu Spaceon Electronics | Guangxi Wuzhou vs. Hainan Mining Co |
| Sanxiang Advanced vs. Jointo Energy Investment | Sanxiang Advanced vs. Guangxi Wuzhou Communications | Sanxiang Advanced vs. Songz Automobile Air | Sanxiang Advanced vs. Jiangsu Yueda Investment |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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