Correlation Between Jiangxi Ganfeng and Sichuan Yahua
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Sichuan Yahua Industrial, you can compare the effects of market volatilities on Jiangxi Ganfeng and Sichuan Yahua 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 Sichuan Yahua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Sichuan Yahua.
Diversification Opportunities for Jiangxi Ganfeng and Sichuan Yahua
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Sichuan is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Sichuan Yahua Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Yahua Industrial 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 Sichuan Yahua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Yahua Industrial has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Sichuan Yahua go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Sichuan Yahua
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 1.28 times more return on investment than Sichuan Yahua. However, Jiangxi Ganfeng is 1.28 times more volatile than Sichuan Yahua Industrial. It trades about 0.23 of its potential returns per unit of risk. Sichuan Yahua Industrial is currently generating about 0.23 per unit of risk. If you would invest 2,751 in Jiangxi Ganfeng Lithium on August 25, 2024 and sell it today you would earn a total of 1,357 from holding Jiangxi Ganfeng Lithium or generate 49.33% 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. Sichuan Yahua Industrial
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Sichuan Yahua Industrial |
Jiangxi Ganfeng and Sichuan Yahua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Sichuan Yahua
The main advantage of trading using opposite Jiangxi Ganfeng and Sichuan Yahua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Sichuan Yahua 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 Sichuan Yahua will offset losses from the drop in Sichuan Yahua's long position.| Jiangxi Ganfeng vs. Zijin Mining Group | Jiangxi Ganfeng vs. Wanhua Chemical Group | Jiangxi Ganfeng vs. Baoshan Iron Steel | Jiangxi Ganfeng vs. Shandong Gold Mining |
| Sichuan Yahua vs. Changchun UP Optotech | Sichuan Yahua vs. Anhui Deli Household | Sichuan Yahua vs. Kangping Technology Co | Sichuan Yahua vs. CGN Nuclear Technology |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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