Correlation Between Sanxiang Advanced and Guangdong Qunxing
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By analyzing existing cross correlation between Sanxiang Advanced Materials and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Sanxiang Advanced and Guangdong Qunxing 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 Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanxiang Advanced and Guangdong Qunxing.
Diversification Opportunities for Sanxiang Advanced and Guangdong Qunxing
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sanxiang and Guangdong is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sanxiang Advanced Materials and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Sanxiang Advanced i.e., Sanxiang Advanced and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Sanxiang Advanced and Guangdong Qunxing
Assuming the 90 days trading horizon Sanxiang Advanced Materials is expected to generate 1.13 times more return on investment than Guangdong Qunxing. However, Sanxiang Advanced is 1.13 times more volatile than Guangdong Qunxing Toys. It trades about 0.05 of its potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about 0.02 per unit of risk. 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 Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Sanxiang Advanced Materials vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Sanxiang Advanced |
| Guangdong Qunxing Toys |
Sanxiang Advanced and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanxiang Advanced and Guangdong Qunxing
The main advantage of trading using opposite Sanxiang Advanced and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanxiang Advanced position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Sanxiang Advanced vs. Jilin Chemical Fibre | Sanxiang Advanced vs. Liuzhou Chemical Industry | Sanxiang Advanced vs. HeBei Jinniu Chemical | Sanxiang Advanced vs. Linewell Software Co |
| Guangdong Qunxing vs. State Grid InformationCommunication | Guangdong Qunxing vs. Orinko Advanced Plastics | Guangdong Qunxing vs. Sanxiang Advanced Materials | Guangdong Qunxing vs. Jiangnan Mould Plastic |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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