Correlation Between Jiangxi Ganfeng and Yunnan Chuangxin
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Yunnan Chuangxin New, you can compare the effects of market volatilities on Jiangxi Ganfeng and Yunnan Chuangxin 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 Yunnan Chuangxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Yunnan Chuangxin.
Diversification Opportunities for Jiangxi Ganfeng and Yunnan Chuangxin
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Yunnan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Yunnan Chuangxin New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Chuangxin New 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 Yunnan Chuangxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Chuangxin New has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Yunnan Chuangxin go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Yunnan Chuangxin
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 1.0 times more return on investment than Yunnan Chuangxin. However, Jiangxi Ganfeng is 1.0 times more volatile than Yunnan Chuangxin New. It trades about -0.14 of its potential returns per unit of risk. Yunnan Chuangxin New is currently generating about -0.26 per unit of risk. If you would invest 3,596 in Jiangxi Ganfeng Lithium on October 28, 2024 and sell it today you would lose (236.00) from holding Jiangxi Ganfeng Lithium or give up 6.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. Yunnan Chuangxin New
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Yunnan Chuangxin New |
Jiangxi Ganfeng and Yunnan Chuangxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Yunnan Chuangxin
The main advantage of trading using opposite Jiangxi Ganfeng and Yunnan Chuangxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Yunnan Chuangxin 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 Yunnan Chuangxin will offset losses from the drop in Yunnan Chuangxin's long position.| Jiangxi Ganfeng vs. Suzhou Xingye Material | Jiangxi Ganfeng vs. Shuhua Sports Co | Jiangxi Ganfeng vs. Advanced Technology Materials | Jiangxi Ganfeng vs. Anhui Transport Consulting |
| Yunnan Chuangxin vs. Lander Sports Development | Yunnan Chuangxin vs. Rising Nonferrous Metals | Yunnan Chuangxin vs. Everdisplay Optronics Shanghai | Yunnan Chuangxin vs. Shenzhen MYS Environmental |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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