Correlation Between Jiangxi Ganfeng and Shenzhen Noposion
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Jiangxi Ganfeng and Shenzhen Noposion 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 Shenzhen Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Shenzhen Noposion.
Diversification Opportunities for Jiangxi Ganfeng and Shenzhen Noposion
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Shenzhen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion 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 Shenzhen Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Shenzhen Noposion
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 1.52 times more return on investment than Shenzhen Noposion. However, Jiangxi Ganfeng is 1.52 times more volatile than Shenzhen Noposion Agrochemicals. It trades about 0.08 of its potential returns per unit of risk. Shenzhen Noposion Agrochemicals is currently generating about 0.08 per unit of risk. If you would invest 3,240 in Jiangxi Ganfeng Lithium on September 1, 2024 and sell it today you would earn a total of 965.00 from holding Jiangxi Ganfeng Lithium or generate 29.78% 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. Shenzhen Noposion Agrochemical
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Shenzhen Noposion |
Jiangxi Ganfeng and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Shenzhen Noposion
The main advantage of trading using opposite Jiangxi Ganfeng and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Shenzhen Noposion 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 Shenzhen Noposion will offset losses from the drop in Shenzhen Noposion'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 |
| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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