Correlation Between Jiangxi Ganfeng and Zhejiang Zanyu
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Zhejiang Zanyu Technology, you can compare the effects of market volatilities on Jiangxi Ganfeng and Zhejiang Zanyu 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 Zhejiang Zanyu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Zhejiang Zanyu.
Diversification Opportunities for Jiangxi Ganfeng and Zhejiang Zanyu
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Zhejiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Zhejiang Zanyu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Zanyu Technology 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 Zhejiang Zanyu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Zanyu Technology has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Zhejiang Zanyu go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Zhejiang Zanyu
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 1.29 times more return on investment than Zhejiang Zanyu. However, Jiangxi Ganfeng is 1.29 times more volatile than Zhejiang Zanyu Technology. It trades about 0.23 of its potential returns per unit of risk. Zhejiang Zanyu Technology is currently generating about 0.28 per unit of risk. If you would invest 3,398 in Jiangxi Ganfeng Lithium on September 1, 2024 and sell it today you would earn a total of 807.00 from holding Jiangxi Ganfeng Lithium or generate 23.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. Zhejiang Zanyu Technology
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Zhejiang Zanyu Technology |
Jiangxi Ganfeng and Zhejiang Zanyu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Zhejiang Zanyu
The main advantage of trading using opposite Jiangxi Ganfeng and Zhejiang Zanyu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Zhejiang Zanyu 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 Zhejiang Zanyu will offset losses from the drop in Zhejiang Zanyu's long position.| Jiangxi Ganfeng vs. China Minmetals Rare | Jiangxi Ganfeng vs. Shenzhen Kexin Communication | Jiangxi Ganfeng vs. Pengxin International Mining | Jiangxi Ganfeng vs. Guangdong Shenglu Telecommunication |
| Zhejiang Zanyu vs. Zijin Mining Group | Zhejiang Zanyu vs. Wanhua Chemical Group | Zhejiang Zanyu vs. Baoshan Iron Steel | Zhejiang Zanyu 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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