Correlation Between Jiangxi Ganfeng and Shanxi Tond
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Shanxi Tond Chemical, you can compare the effects of market volatilities on Jiangxi Ganfeng and Shanxi Tond 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 Shanxi Tond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Shanxi Tond.
Diversification Opportunities for Jiangxi Ganfeng and Shanxi Tond
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Shanxi is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Shanxi Tond Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Tond Chemical 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 Shanxi Tond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Tond Chemical has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Shanxi Tond go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Shanxi Tond
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 1.46 times more return on investment than Shanxi Tond. However, Jiangxi Ganfeng is 1.46 times more volatile than Shanxi Tond Chemical. It trades about 0.03 of its potential returns per unit of risk. Shanxi Tond Chemical is currently generating about 0.0 per unit of risk. If you would invest 3,196 in Jiangxi Ganfeng Lithium on October 14, 2024 and sell it today you would earn a total of 118.00 from holding Jiangxi Ganfeng Lithium or generate 3.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. Shanxi Tond Chemical
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Shanxi Tond Chemical |
Jiangxi Ganfeng and Shanxi Tond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Shanxi Tond
The main advantage of trading using opposite Jiangxi Ganfeng and Shanxi Tond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Shanxi Tond 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 Shanxi Tond will offset losses from the drop in Shanxi Tond's long position.| Jiangxi Ganfeng vs. MayAir Technology Co | Jiangxi Ganfeng vs. Shantou Wanshun Package | Jiangxi Ganfeng vs. Youyou Foods Co | Jiangxi Ganfeng vs. Road Environment Technology |
| Shanxi Tond vs. Tibet Huayu Mining | Shanxi Tond vs. Hefei Metalforming Mach | Shanxi Tond vs. Beijing HuaYuanYiTong Thermal | Shanxi Tond vs. Xinjiang Baodi 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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