Correlation Between China Securities and Jiangxi Ganfeng
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By analyzing existing cross correlation between China Securities 800 and Jiangxi Ganfeng Lithium, you can compare the effects of market volatilities on China Securities and Jiangxi Ganfeng 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 China Securities with a short position of Jiangxi Ganfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Jiangxi Ganfeng.
Diversification Opportunities for China Securities and Jiangxi Ganfeng
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Jiangxi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Jiangxi Ganfeng Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Ganfeng Lithium and China Securities 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 China Securities 800 are associated (or correlated) with Jiangxi Ganfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Ganfeng Lithium has no effect on the direction of China Securities i.e., China Securities and Jiangxi Ganfeng go up and down completely randomly.
Pair Corralation between China Securities and Jiangxi Ganfeng
Assuming the 90 days trading horizon China Securities is expected to generate 20.24 times less return on investment than Jiangxi Ganfeng. But when comparing it to its historical volatility, China Securities 800 is 3.7 times less risky than Jiangxi Ganfeng. It trades about 0.05 of its potential returns per unit of risk. Jiangxi Ganfeng Lithium is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 3,315 in Jiangxi Ganfeng Lithium on August 24, 2024 and sell it today you would earn a total of 964.00 from holding Jiangxi Ganfeng Lithium or generate 29.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Jiangxi Ganfeng Lithium
Performance |
| Timeline |
China Securities and Jiangxi Ganfeng Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Jiangxi Ganfeng Lithium
Pair trading matchups for Jiangxi Ganfeng
Pair Trading with China Securities and Jiangxi Ganfeng
The main advantage of trading using opposite China Securities and Jiangxi Ganfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Jiangxi Ganfeng 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 Jiangxi Ganfeng will offset losses from the drop in Jiangxi Ganfeng's long position.| China Securities vs. Zhejiang Yayi Metal | China Securities vs. Huatian Hotel Group | China Securities vs. Semiconductor Manufacturing Electronics | China Securities vs. Dalian Thermal Power |
| Jiangxi Ganfeng vs. City Development Environment | Jiangxi Ganfeng vs. Fushun Special Steel | Jiangxi Ganfeng vs. Wangneng Environment Co | Jiangxi Ganfeng vs. Shenzhen MYS Environmental |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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