Correlation Between Sanxiang Advanced and Shanghai Jinfeng
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By analyzing existing cross correlation between Sanxiang Advanced Materials and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Sanxiang Advanced and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanxiang Advanced and Shanghai Jinfeng.
Diversification Opportunities for Sanxiang Advanced and Shanghai Jinfeng
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sanxiang and Shanghai is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sanxiang Advanced Materials and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Sanxiang Advanced i.e., Sanxiang Advanced and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Sanxiang Advanced and Shanghai Jinfeng
Assuming the 90 days trading horizon Sanxiang Advanced is expected to generate 3.17 times less return on investment than Shanghai Jinfeng. In addition to that, Sanxiang Advanced is 1.47 times more volatile than Shanghai Jinfeng Wine. It trades about 0.01 of its total potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.04 per unit of volatility. If you would invest 566.00 in Shanghai Jinfeng Wine on August 29, 2024 and sell it today you would earn a total of 9.00 from holding Shanghai Jinfeng Wine or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanxiang Advanced Materials vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Sanxiang Advanced |
| Shanghai Jinfeng Wine |
Sanxiang Advanced and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanxiang Advanced and Shanghai Jinfeng
The main advantage of trading using opposite Sanxiang Advanced and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanxiang Advanced position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Sanxiang Advanced vs. Anhui Jianghuai Automobile | Sanxiang Advanced vs. Tongyu Communication | Sanxiang Advanced vs. Changchun Faway Automobile | Sanxiang Advanced vs. Sinomach Automobile Co |
| Shanghai Jinfeng vs. BYD Co Ltd | Shanghai Jinfeng vs. China Mobile Limited | Shanghai Jinfeng vs. Agricultural Bank of | Shanghai Jinfeng vs. Industrial and Commercial |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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