Correlation Between Sanxiang Advanced and Malion New
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By analyzing existing cross correlation between Sanxiang Advanced Materials and Malion New Materials, you can compare the effects of market volatilities on Sanxiang Advanced and Malion New 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 Malion New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanxiang Advanced and Malion New.
Diversification Opportunities for Sanxiang Advanced and Malion New
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sanxiang and Malion is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Sanxiang Advanced Materials and Malion New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malion New Materials 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 Malion New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malion New Materials has no effect on the direction of Sanxiang Advanced i.e., Sanxiang Advanced and Malion New go up and down completely randomly.
Pair Corralation between Sanxiang Advanced and Malion New
Assuming the 90 days trading horizon Sanxiang Advanced Materials is expected to under-perform the Malion New. But the stock apears to be less risky and, when comparing its historical volatility, Sanxiang Advanced Materials is 1.34 times less risky than Malion New. The stock trades about -0.01 of its potential returns per unit of risk. The Malion New Materials is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 815.00 in Malion New Materials on September 1, 2024 and sell it today you would earn a total of 189.00 from holding Malion New Materials or generate 23.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanxiang Advanced Materials vs. Malion New Materials
Performance |
| Timeline |
| Sanxiang Advanced |
| Malion New Materials |
Sanxiang Advanced and Malion New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanxiang Advanced and Malion New
The main advantage of trading using opposite Sanxiang Advanced and Malion New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanxiang Advanced position performs unexpectedly, Malion New 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 Malion New will offset losses from the drop in Malion New's long position.| Sanxiang Advanced vs. Ligao Foods CoLtd | Sanxiang Advanced vs. Great Sun Foods Co | Sanxiang Advanced vs. Anji Foodstuff Co | Sanxiang Advanced vs. Hengdian Entertainment Co |
| Malion New vs. Leaguer Shenzhen MicroElectronics | Malion New vs. StarPower Semiconductor | Malion New vs. Integrated Electronic Systems | Malion New vs. Epoxy Base Electronic |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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