Correlation Between Hongrun Construction and Jiangxi Ganfeng
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By analyzing existing cross correlation between Hongrun Construction Group and Jiangxi Ganfeng Lithium, you can compare the effects of market volatilities on Hongrun Construction 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 Hongrun Construction with a short position of Jiangxi Ganfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and Jiangxi Ganfeng.
Diversification Opportunities for Hongrun Construction and Jiangxi Ganfeng
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hongrun and Jiangxi is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction Group 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 Hongrun Construction 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 Hongrun Construction Group 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 Hongrun Construction i.e., Hongrun Construction and Jiangxi Ganfeng go up and down completely randomly.
Pair Corralation between Hongrun Construction and Jiangxi Ganfeng
Assuming the 90 days trading horizon Hongrun Construction is expected to generate 1.65 times less return on investment than Jiangxi Ganfeng. But when comparing it to its historical volatility, Hongrun Construction Group is 1.54 times less risky than Jiangxi Ganfeng. It trades about 0.21 of its potential returns per unit of risk. Jiangxi Ganfeng Lithium is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 3,412 in Jiangxi Ganfeng Lithium on September 2, 2024 and sell it today you would earn a total of 793.00 from holding Jiangxi Ganfeng Lithium or generate 23.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hongrun Construction Group vs. Jiangxi Ganfeng Lithium
Performance |
| Timeline |
| Hongrun Construction |
| Jiangxi Ganfeng Lithium |
Hongrun Construction and Jiangxi Ganfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and Jiangxi Ganfeng
The main advantage of trading using opposite Hongrun Construction and Jiangxi Ganfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction 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.| Hongrun Construction vs. 159681 | Hongrun Construction vs. 159005 | Hongrun Construction vs. Loctek Ergonomic Technology | Hongrun Construction vs. 516220 |
| Jiangxi Ganfeng vs. Hongrun Construction Group | Jiangxi Ganfeng vs. Yili Chuanning Biotechnology | Jiangxi Ganfeng vs. Sichuan Hebang Biotechnology | Jiangxi Ganfeng vs. Tengda Construction Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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