Correlation Between Sanxiang Advanced and Bank of Communications
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By analyzing existing cross correlation between Sanxiang Advanced Materials and Bank of Communications, you can compare the effects of market volatilities on Sanxiang Advanced and Bank of Communications 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 Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanxiang Advanced and Bank of Communications.
Diversification Opportunities for Sanxiang Advanced and Bank of Communications
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sanxiang and Bank is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sanxiang Advanced Materials and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications 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 Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of Sanxiang Advanced i.e., Sanxiang Advanced and Bank of Communications go up and down completely randomly.
Pair Corralation between Sanxiang Advanced and Bank of Communications
Assuming the 90 days trading horizon Sanxiang Advanced Materials is expected to generate 2.7 times more return on investment than Bank of Communications. However, Sanxiang Advanced is 2.7 times more volatile than Bank of Communications. It trades about 0.05 of its potential returns per unit of risk. Bank of Communications is currently generating about 0.08 per unit of risk. If you would invest 988.00 in Sanxiang Advanced Materials on October 14, 2024 and sell it today you would earn a total of 699.00 from holding Sanxiang Advanced Materials or generate 70.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanxiang Advanced Materials vs. Bank of Communications
Performance |
| Timeline |
| Sanxiang Advanced |
| Bank of Communications |
Sanxiang Advanced and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanxiang Advanced and Bank of Communications
The main advantage of trading using opposite Sanxiang Advanced and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanxiang Advanced position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.| Sanxiang Advanced vs. Jointo Energy Investment | Sanxiang Advanced vs. Guangxi Wuzhou Communications | Sanxiang Advanced vs. Songz Automobile Air | Sanxiang Advanced vs. Jiangsu Yueda Investment |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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