Correlation Between Sanxiang Advanced and Chengdu B
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By analyzing existing cross correlation between Sanxiang Advanced Materials and Chengdu B ray Media, you can compare the effects of market volatilities on Sanxiang Advanced and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanxiang Advanced and Chengdu B.
Diversification Opportunities for Sanxiang Advanced and Chengdu B
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sanxiang and Chengdu is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sanxiang Advanced Materials and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Sanxiang Advanced i.e., Sanxiang Advanced and Chengdu B go up and down completely randomly.
Pair Corralation between Sanxiang Advanced and Chengdu B
Assuming the 90 days trading horizon Sanxiang Advanced Materials is expected to generate 0.49 times more return on investment than Chengdu B. However, Sanxiang Advanced Materials is 2.03 times less risky than Chengdu B. It trades about 0.01 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about -0.03 per unit of risk. If you would invest 1,713 in Sanxiang Advanced Materials on October 30, 2024 and sell it today you would lose (6.00) from holding Sanxiang Advanced Materials or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanxiang Advanced Materials vs. Chengdu B ray Media
Performance |
| Timeline |
| Sanxiang Advanced |
| Chengdu B ray |
Sanxiang Advanced and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanxiang Advanced and Chengdu B
The main advantage of trading using opposite Sanxiang Advanced and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanxiang Advanced position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B's 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 |
| Chengdu B vs. Silkroad Visual Technology | Chengdu B vs. Guangzhou Tinci Materials | Chengdu B vs. Swancor Advanced Materials | Chengdu B vs. Shanghai Broadband Technology |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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