Correlation Between Jiangxi Ganfeng and Xiangtan Electrochemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Xiangtan Electrochemical Scientific, you can compare the effects of market volatilities on Jiangxi Ganfeng and Xiangtan Electrochemical 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 Xiangtan Electrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Xiangtan Electrochemical.
Diversification Opportunities for Jiangxi Ganfeng and Xiangtan Electrochemical
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Xiangtan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Xiangtan Electrochemical Scien in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangtan Electrochemical 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 Xiangtan Electrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangtan Electrochemical has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Xiangtan Electrochemical go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Xiangtan Electrochemical
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 1.13 times more return on investment than Xiangtan Electrochemical. However, Jiangxi Ganfeng is 1.13 times more volatile than Xiangtan Electrochemical Scientific. It trades about 0.2 of its potential returns per unit of risk. Xiangtan Electrochemical Scientific is currently generating about 0.17 per unit of risk. If you would invest 3,308 in Jiangxi Ganfeng Lithium on November 28, 2024 and sell it today you would earn a total of 241.00 from holding Jiangxi Ganfeng Lithium or generate 7.29% 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. Xiangtan Electrochemical Scien
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Xiangtan Electrochemical |
Jiangxi Ganfeng and Xiangtan Electrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Xiangtan Electrochemical
The main advantage of trading using opposite Jiangxi Ganfeng and Xiangtan Electrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Xiangtan Electrochemical 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 Xiangtan Electrochemical will offset losses from the drop in Xiangtan Electrochemical's long position.| Jiangxi Ganfeng vs. Guangdong Wens Foodstuff | Jiangxi Ganfeng vs. Xiwang Foodstuffs Co | Jiangxi Ganfeng vs. Chongqing Shunbo Aluminum | Jiangxi Ganfeng vs. Rising Nonferrous Metals |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |