Correlation Between Jiangxi Ganfeng and ADAMA
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and ADAMA, you can compare the effects of market volatilities on Jiangxi Ganfeng and ADAMA 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 Jiangxi Ganfeng with a short position of ADAMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and ADAMA.
Diversification Opportunities for Jiangxi Ganfeng and ADAMA
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and ADAMA is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and ADAMA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADAMA and Jiangxi Ganfeng 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 Jiangxi Ganfeng Lithium are associated (or correlated) with ADAMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADAMA has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and ADAMA go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and ADAMA
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 1.47 times more return on investment than ADAMA. However, Jiangxi Ganfeng is 1.47 times more volatile than ADAMA. It trades about 0.05 of its potential returns per unit of risk. ADAMA is currently generating about -0.06 per unit of risk. If you would invest 3,554 in Jiangxi Ganfeng Lithium on November 18, 2024 and sell it today you would earn a total of 47.00 from holding Jiangxi Ganfeng Lithium or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. ADAMA
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| ADAMA |
Jiangxi Ganfeng and ADAMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and ADAMA
The main advantage of trading using opposite Jiangxi Ganfeng and ADAMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, ADAMA 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 ADAMA will offset losses from the drop in ADAMA's long position.| Jiangxi Ganfeng vs. Zhongrun Resources Investment | Jiangxi Ganfeng vs. Hubei Geoway Investment | Jiangxi Ganfeng vs. Hunan Investment Group | Jiangxi Ganfeng vs. Cowealth Medical China |
| ADAMA vs. Zoje Resources Investment | ADAMA vs. Metro Investment Development | ADAMA vs. Henan Shuanghui Investment | ADAMA vs. Zhejiang Construction 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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