Correlation Between Jiangxi Ganfeng and Yunnan Aluminium
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Yunnan Aluminium Co, you can compare the effects of market volatilities on Jiangxi Ganfeng and Yunnan Aluminium 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 Yunnan Aluminium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Yunnan Aluminium.
Diversification Opportunities for Jiangxi Ganfeng and Yunnan Aluminium
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Yunnan is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Yunnan Aluminium Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Aluminium 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 Yunnan Aluminium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Aluminium has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Yunnan Aluminium go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Yunnan Aluminium
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 1.75 times more return on investment than Yunnan Aluminium. However, Jiangxi Ganfeng is 1.75 times more volatile than Yunnan Aluminium Co. It trades about 0.25 of its potential returns per unit of risk. Yunnan Aluminium Co is currently generating about -0.17 per unit of risk. If you would invest 3,426 in Jiangxi Ganfeng Lithium on August 27, 2024 and sell it today you would earn a total of 841.00 from holding Jiangxi Ganfeng Lithium or generate 24.55% 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. Yunnan Aluminium Co
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Yunnan Aluminium |
Jiangxi Ganfeng and Yunnan Aluminium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Yunnan Aluminium
The main advantage of trading using opposite Jiangxi Ganfeng and Yunnan Aluminium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Yunnan Aluminium 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 Yunnan Aluminium will offset losses from the drop in Yunnan Aluminium's long position.| Jiangxi Ganfeng vs. Zhejiang Publishing Media | Jiangxi Ganfeng vs. Tieling Newcity Investment | Jiangxi Ganfeng vs. Harbin Hatou Investment | Jiangxi Ganfeng vs. Beijing Kaiwen Education |
| Yunnan Aluminium vs. GigaDevice SemiconductorBeiji | Yunnan Aluminium vs. Zhongyin Babi Food | Yunnan Aluminium vs. Anji Foodstuff Co | Yunnan Aluminium vs. Lootom Telcovideo Network |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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