Correlation Between Sanxiang Advanced and Goke Microelectronics
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By analyzing existing cross correlation between Sanxiang Advanced Materials and Goke Microelectronics Co, you can compare the effects of market volatilities on Sanxiang Advanced and Goke Microelectronics 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 Goke Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanxiang Advanced and Goke Microelectronics.
Diversification Opportunities for Sanxiang Advanced and Goke Microelectronics
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sanxiang and Goke is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sanxiang Advanced Materials and Goke Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goke Microelectronics 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 Goke Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goke Microelectronics has no effect on the direction of Sanxiang Advanced i.e., Sanxiang Advanced and Goke Microelectronics go up and down completely randomly.
Pair Corralation between Sanxiang Advanced and Goke Microelectronics
Assuming the 90 days trading horizon Sanxiang Advanced Materials is expected to generate 0.79 times more return on investment than Goke Microelectronics. However, Sanxiang Advanced Materials is 1.26 times less risky than Goke Microelectronics. It trades about -0.01 of its potential returns per unit of risk. Goke Microelectronics Co is currently generating about -0.11 per unit of risk. If you would invest 1,696 in Sanxiang Advanced Materials on October 17, 2024 and sell it today you would lose (19.00) from holding Sanxiang Advanced Materials or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanxiang Advanced Materials vs. Goke Microelectronics Co
Performance |
| Timeline |
| Sanxiang Advanced |
| Goke Microelectronics |
Sanxiang Advanced and Goke Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanxiang Advanced and Goke Microelectronics
The main advantage of trading using opposite Sanxiang Advanced and Goke Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanxiang Advanced position performs unexpectedly, Goke Microelectronics 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 Goke Microelectronics will offset losses from the drop in Goke Microelectronics' long position.| Sanxiang Advanced vs. Zijin Mining Group | Sanxiang Advanced vs. Wanhua Chemical Group | Sanxiang Advanced vs. Baoshan Iron Steel | Sanxiang Advanced vs. Shandong Gold Mining |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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