Correlation Between Jiangxi Ganfeng and Xiamen Hexing
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Xiamen Hexing Packaging, you can compare the effects of market volatilities on Jiangxi Ganfeng and Xiamen Hexing 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 Xiamen Hexing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Xiamen Hexing.
Diversification Opportunities for Jiangxi Ganfeng and Xiamen Hexing
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangxi and Xiamen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Xiamen Hexing Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Hexing Packaging 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 Xiamen Hexing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Hexing Packaging has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Xiamen Hexing go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Xiamen Hexing
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 1.07 times more return on investment than Xiamen Hexing. However, Jiangxi Ganfeng is 1.07 times more volatile than Xiamen Hexing Packaging. It trades about -0.09 of its potential returns per unit of risk. Xiamen Hexing Packaging is currently generating about -0.2 per unit of risk. If you would invest 3,710 in Jiangxi Ganfeng Lithium on October 21, 2024 and sell it today you would lose (156.00) from holding Jiangxi Ganfeng Lithium or give up 4.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. Xiamen Hexing Packaging
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Xiamen Hexing Packaging |
Jiangxi Ganfeng and Xiamen Hexing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Xiamen Hexing
The main advantage of trading using opposite Jiangxi Ganfeng and Xiamen Hexing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Xiamen Hexing 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 Xiamen Hexing will offset losses from the drop in Xiamen Hexing's long position.| Jiangxi Ganfeng vs. De Rucci Healthy | Jiangxi Ganfeng vs. Tongyu Communication | Jiangxi Ganfeng vs. Sanbo Hospital Management | Jiangxi Ganfeng vs. Jiangxi Hengda Hi Tech |
| Xiamen Hexing vs. Zijin Mining Group | Xiamen Hexing vs. Wanhua Chemical Group | Xiamen Hexing vs. Baoshan Iron Steel | Xiamen Hexing 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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