Correlation Between Jiangxi Ganfeng and Advanced Technology
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Advanced Technology Materials, you can compare the effects of market volatilities on Jiangxi Ganfeng and Advanced Technology 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 Advanced Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Advanced Technology.
Diversification Opportunities for Jiangxi Ganfeng and Advanced Technology
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Advanced is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Advanced Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Technology 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 Advanced Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Technology has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Advanced Technology go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Advanced Technology
Assuming the 90 days trading horizon Jiangxi Ganfeng is expected to generate 1.03 times less return on investment than Advanced Technology. In addition to that, Jiangxi Ganfeng is 1.11 times more volatile than Advanced Technology Materials. It trades about 0.17 of its total potential returns per unit of risk. Advanced Technology Materials is currently generating about 0.19 per unit of volatility. If you would invest 1,029 in Advanced Technology Materials on August 29, 2024 and sell it today you would earn a total of 185.00 from holding Advanced Technology Materials or generate 17.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. Advanced Technology Materials
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Advanced Technology |
Jiangxi Ganfeng and Advanced Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Advanced Technology
The main advantage of trading using opposite Jiangxi Ganfeng and Advanced Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Advanced Technology 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 Advanced Technology will offset losses from the drop in Advanced Technology's long position.| Jiangxi Ganfeng vs. Northking Information Technology | Jiangxi Ganfeng vs. Guangzhou KingTeller Technology | Jiangxi Ganfeng vs. Linewell Software Co | Jiangxi Ganfeng vs. Tianshui Huatian Technology |
| Advanced Technology vs. Zijin Mining Group | Advanced Technology vs. Wanhua Chemical Group | Advanced Technology vs. Baoshan Iron Steel | Advanced Technology 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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