Correlation Between Sanxiang Advanced and Sinosteel Luonai
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By analyzing existing cross correlation between Sanxiang Advanced Materials and Sinosteel Luonai Materials, you can compare the effects of market volatilities on Sanxiang Advanced and Sinosteel Luonai 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 Sinosteel Luonai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanxiang Advanced and Sinosteel Luonai.
Diversification Opportunities for Sanxiang Advanced and Sinosteel Luonai
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sanxiang and Sinosteel is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sanxiang Advanced Materials and Sinosteel Luonai Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Luonai Mat 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 Sinosteel Luonai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Luonai Mat has no effect on the direction of Sanxiang Advanced i.e., Sanxiang Advanced and Sinosteel Luonai go up and down completely randomly.
Pair Corralation between Sanxiang Advanced and Sinosteel Luonai
Assuming the 90 days trading horizon Sanxiang Advanced is expected to generate 2.84 times less return on investment than Sinosteel Luonai. In addition to that, Sanxiang Advanced is 1.6 times more volatile than Sinosteel Luonai Materials. It trades about 0.01 of its total potential returns per unit of risk. Sinosteel Luonai Materials is currently generating about 0.04 per unit of volatility. If you would invest 408.00 in Sinosteel Luonai Materials on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Sinosteel Luonai Materials or generate 1.47% 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. Sinosteel Luonai Materials
Performance |
| Timeline |
| Sanxiang Advanced |
| Sinosteel Luonai Mat |
Sanxiang Advanced and Sinosteel Luonai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanxiang Advanced and Sinosteel Luonai
The main advantage of trading using opposite Sanxiang Advanced and Sinosteel Luonai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanxiang Advanced position performs unexpectedly, Sinosteel Luonai 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 Sinosteel Luonai will offset losses from the drop in Sinosteel Luonai'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 |
| Sinosteel Luonai vs. Zijin Mining Group | Sinosteel Luonai vs. Wanhua Chemical Group | Sinosteel Luonai vs. Baoshan Iron Steel | Sinosteel Luonai 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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