Correlation Between Jiangxi Ganfeng and FSPG Hi
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and FSPG Hi Tech Co, you can compare the effects of market volatilities on Jiangxi Ganfeng and FSPG Hi 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 FSPG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and FSPG Hi.
Diversification Opportunities for Jiangxi Ganfeng and FSPG Hi
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and FSPG is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and FSPG Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSPG Hi Tech 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 FSPG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSPG Hi Tech has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and FSPG Hi go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and FSPG Hi
Assuming the 90 days trading horizon Jiangxi Ganfeng is expected to generate 1.11 times less return on investment than FSPG Hi. But when comparing it to its historical volatility, Jiangxi Ganfeng Lithium is 1.43 times less risky than FSPG Hi. It trades about 0.23 of its potential returns per unit of risk. FSPG Hi Tech Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 570.00 in FSPG Hi Tech Co on September 1, 2024 and sell it today you would earn a total of 130.00 from holding FSPG Hi Tech Co or generate 22.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. FSPG Hi Tech Co
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| FSPG Hi Tech |
Jiangxi Ganfeng and FSPG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and FSPG Hi
The main advantage of trading using opposite Jiangxi Ganfeng and FSPG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, FSPG Hi 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 FSPG Hi will offset losses from the drop in FSPG Hi's long position.| Jiangxi Ganfeng vs. China Minmetals Rare | Jiangxi Ganfeng vs. Shenzhen Kexin Communication | Jiangxi Ganfeng vs. Pengxin International Mining | Jiangxi Ganfeng vs. Guangdong Shenglu Telecommunication |
| FSPG Hi vs. Impulse Qingdao Health | FSPG Hi vs. Eastern Air Logistics | FSPG Hi vs. Meinian Onehealth Healthcare | FSPG Hi vs. Everjoy Health 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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