Correlation Between Sanxiang Advanced and Kuangda Technology
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By analyzing existing cross correlation between Sanxiang Advanced Materials and Kuangda Technology Group, you can compare the effects of market volatilities on Sanxiang Advanced and Kuangda Technology 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 Sanxiang Advanced with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanxiang Advanced and Kuangda Technology.
Diversification Opportunities for Sanxiang Advanced and Kuangda Technology
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sanxiang and Kuangda is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sanxiang Advanced Materials and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology and Sanxiang Advanced 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 Sanxiang Advanced Materials are associated (or correlated) with Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Sanxiang Advanced i.e., Sanxiang Advanced and Kuangda Technology go up and down completely randomly.
Pair Corralation between Sanxiang Advanced and Kuangda Technology
Assuming the 90 days trading horizon Sanxiang Advanced Materials is expected to generate 1.16 times more return on investment than Kuangda Technology. However, Sanxiang Advanced is 1.16 times more volatile than Kuangda Technology Group. It trades about 0.15 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about -0.08 per unit of risk. If you would invest 1,600 in Sanxiang Advanced Materials on October 26, 2024 and sell it today you would earn a total of 123.00 from holding Sanxiang Advanced Materials or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanxiang Advanced Materials vs. Kuangda Technology Group
Performance |
| Timeline |
| Sanxiang Advanced |
| Kuangda Technology |
Sanxiang Advanced and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanxiang Advanced and Kuangda Technology
The main advantage of trading using opposite Sanxiang Advanced and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanxiang Advanced position performs unexpectedly, Kuangda Technology 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 Kuangda Technology will offset losses from the drop in Kuangda Technology's long position.| Sanxiang Advanced vs. Lootom Telcovideo Network | Sanxiang Advanced vs. Fujian Longzhou Transportation | Sanxiang Advanced vs. Jiangsu Jinling Sports | Sanxiang Advanced vs. Nanjing Putian Telecommunications |
| Kuangda Technology vs. PetroChina Co Ltd | Kuangda Technology vs. China Mobile Limited | Kuangda Technology vs. CNOOC Limited | Kuangda Technology vs. Ping An Insurance |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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