Correlation Between Jiangxi Ganfeng and Do Fluoride
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Jiangxi Ganfeng and Do Fluoride 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 Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Do Fluoride.
Diversification Opportunities for Jiangxi Ganfeng and Do Fluoride
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and 002407 is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Do Fluoride go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Do Fluoride
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 1.11 times more return on investment than Do Fluoride. However, Jiangxi Ganfeng is 1.11 times more volatile than Do Fluoride Chemicals Co. It trades about -0.03 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about -0.04 per unit of risk. If you would invest 7,455 in Jiangxi Ganfeng Lithium on September 3, 2024 and sell it today you would lose (3,250) from holding Jiangxi Ganfeng Lithium or give up 43.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Do Fluoride Chemicals |
Jiangxi Ganfeng and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Do Fluoride
The main advantage of trading using opposite Jiangxi Ganfeng and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride'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 |
| Do Fluoride vs. Zijin Mining Group | Do Fluoride vs. Baoshan Iron Steel | Do Fluoride vs. Rongsheng Petrochemical Co | Do Fluoride vs. Hoshine Silicon Ind |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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