Correlation Between Sanxiang Advanced and Tongxing Environmental
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By analyzing existing cross correlation between Sanxiang Advanced Materials and Tongxing Environmental Protection, you can compare the effects of market volatilities on Sanxiang Advanced and Tongxing Environmental 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 Tongxing Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanxiang Advanced and Tongxing Environmental.
Diversification Opportunities for Sanxiang Advanced and Tongxing Environmental
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sanxiang and Tongxing is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sanxiang Advanced Materials and Tongxing Environmental Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongxing Environmental 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 Tongxing Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongxing Environmental has no effect on the direction of Sanxiang Advanced i.e., Sanxiang Advanced and Tongxing Environmental go up and down completely randomly.
Pair Corralation between Sanxiang Advanced and Tongxing Environmental
Assuming the 90 days trading horizon Sanxiang Advanced Materials is expected to under-perform the Tongxing Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Sanxiang Advanced Materials is 1.32 times less risky than Tongxing Environmental. The stock trades about -0.06 of its potential returns per unit of risk. The Tongxing Environmental Protection is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,442 in Tongxing Environmental Protection on October 11, 2024 and sell it today you would earn a total of 3.00 from holding Tongxing Environmental Protection or generate 0.21% 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. Tongxing Environmental Protect
Performance |
| Timeline |
| Sanxiang Advanced |
| Tongxing Environmental |
Sanxiang Advanced and Tongxing Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanxiang Advanced and Tongxing Environmental
The main advantage of trading using opposite Sanxiang Advanced and Tongxing Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanxiang Advanced position performs unexpectedly, Tongxing Environmental 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 Tongxing Environmental will offset losses from the drop in Tongxing Environmental's long position.| Sanxiang Advanced vs. Bank of Communications | Sanxiang Advanced vs. Jiangxi Hengda Hi Tech | Sanxiang Advanced vs. Rising Nonferrous Metals | Sanxiang Advanced vs. Sunwave Communications Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
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