Correlation Between Jiangxi Ganfeng and Guangdong Tengen
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Guangdong Tengen Industrial, you can compare the effects of market volatilities on Jiangxi Ganfeng and Guangdong Tengen 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 Guangdong Tengen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Guangdong Tengen.
Diversification Opportunities for Jiangxi Ganfeng and Guangdong Tengen
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Guangdong is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Guangdong Tengen Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tengen Ind 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 Guangdong Tengen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tengen Ind has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Guangdong Tengen go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Guangdong Tengen
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to under-perform the Guangdong Tengen. In addition to that, Jiangxi Ganfeng is 2.69 times more volatile than Guangdong Tengen Industrial. It trades about -0.07 of its total potential returns per unit of risk. Guangdong Tengen Industrial is currently generating about 0.25 per unit of volatility. If you would invest 970.00 in Guangdong Tengen Industrial on September 13, 2024 and sell it today you would earn a total of 82.00 from holding Guangdong Tengen Industrial or generate 8.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. Guangdong Tengen Industrial
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Guangdong Tengen Ind |
Jiangxi Ganfeng and Guangdong Tengen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Guangdong Tengen
The main advantage of trading using opposite Jiangxi Ganfeng and Guangdong Tengen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Guangdong Tengen 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 Guangdong Tengen will offset losses from the drop in Guangdong Tengen'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 |
| Guangdong Tengen vs. Chongqing Shunbo Aluminum | Guangdong Tengen vs. Aluminum Corp of | Guangdong Tengen vs. Guangdong Jingyi Metal | Guangdong Tengen vs. Hefei Metalforming Mach |
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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