Correlation Between Jiangxi Ganfeng and Beijing Lier
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Beijing Lier High, you can compare the effects of market volatilities on Jiangxi Ganfeng and Beijing Lier 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 Beijing Lier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Beijing Lier.
Diversification Opportunities for Jiangxi Ganfeng and Beijing Lier
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Beijing is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Beijing Lier High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Lier High 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 Beijing Lier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Lier High has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Beijing Lier go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Beijing Lier
Assuming the 90 days trading horizon Jiangxi Ganfeng is expected to generate 1.06 times less return on investment than Beijing Lier. In addition to that, Jiangxi Ganfeng is 1.32 times more volatile than Beijing Lier High. It trades about 0.08 of its total potential returns per unit of risk. Beijing Lier High is currently generating about 0.11 per unit of volatility. If you would invest 336.00 in Beijing Lier High on September 3, 2024 and sell it today you would earn a total of 129.00 from holding Beijing Lier High or generate 38.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. Beijing Lier High
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Beijing Lier High |
Jiangxi Ganfeng and Beijing Lier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Beijing Lier
The main advantage of trading using opposite Jiangxi Ganfeng and Beijing Lier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Beijing Lier 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 Beijing Lier will offset losses from the drop in Beijing Lier's long position.| Jiangxi Ganfeng vs. Dymatic Chemicals | Jiangxi Ganfeng vs. Yingde Greatchem Chemicals | Jiangxi Ganfeng vs. Ningxia Younglight Chemicals | Jiangxi Ganfeng vs. Shandong Polymer Biochemicals |
| Beijing Lier vs. Maoming Petro Chemical Shihua | Beijing Lier vs. Yili Chuanning Biotechnology | Beijing Lier vs. Dymatic Chemicals | Beijing Lier vs. Hubei Dinglong Chemical |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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