Correlation Between Jiangxi Ganfeng and China Minmetals
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and China Minmetals Rare, you can compare the effects of market volatilities on Jiangxi Ganfeng and China Minmetals 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 China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and China Minmetals.
Diversification Opportunities for Jiangxi Ganfeng and China Minmetals
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and China is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and China Minmetals Rare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minmetals Rare 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 China Minmetals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minmetals Rare has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and China Minmetals go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and China Minmetals
Assuming the 90 days trading horizon Jiangxi Ganfeng is expected to generate 1.38 times less return on investment than China Minmetals. In addition to that, Jiangxi Ganfeng is 1.14 times more volatile than China Minmetals Rare. It trades about 0.02 of its total potential returns per unit of risk. China Minmetals Rare is currently generating about 0.03 per unit of volatility. If you would invest 2,764 in China Minmetals Rare on September 2, 2024 and sell it today you would earn a total of 326.00 from holding China Minmetals Rare or generate 11.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. China Minmetals Rare
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| China Minmetals Rare |
Jiangxi Ganfeng and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and China Minmetals
The main advantage of trading using opposite Jiangxi Ganfeng and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, China Minmetals 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 China Minmetals will offset losses from the drop in China Minmetals' long position.| Jiangxi Ganfeng vs. Hongrun Construction Group | Jiangxi Ganfeng vs. Yili Chuanning Biotechnology | Jiangxi Ganfeng vs. Sichuan Hebang Biotechnology | Jiangxi Ganfeng vs. Tengda Construction Group |
| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Wanhua Chemical Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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