Correlation Between Jiangxi Ganfeng and Hubei Forbon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Hubei Forbon Technology, you can compare the effects of market volatilities on Jiangxi Ganfeng and Hubei Forbon 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 Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Hubei Forbon.
Diversification Opportunities for Jiangxi Ganfeng and Hubei Forbon
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Hubei is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Hubei Forbon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Forbon 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 Hubei Forbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Forbon Technology has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Hubei Forbon go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Hubei Forbon
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 1.64 times more return on investment than Hubei Forbon. However, Jiangxi Ganfeng is 1.64 times more volatile than Hubei Forbon Technology. It trades about 0.27 of its potential returns per unit of risk. Hubei Forbon Technology is currently generating about 0.03 per unit of risk. If you would invest 3,197 in Jiangxi Ganfeng Lithium on August 25, 2024 and sell it today you would earn a total of 911.00 from holding Jiangxi Ganfeng Lithium or generate 28.5% 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. Hubei Forbon Technology
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Hubei Forbon Technology |
Jiangxi Ganfeng and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Hubei Forbon
The main advantage of trading using opposite Jiangxi Ganfeng and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Hubei Forbon 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 Hubei Forbon will offset losses from the drop in Hubei Forbon's long position.| Jiangxi Ganfeng vs. City Development Environment | Jiangxi Ganfeng vs. Fushun Special Steel | Jiangxi Ganfeng vs. Wangneng Environment Co | Jiangxi Ganfeng vs. Shenzhen MYS Environmental |
| Hubei Forbon vs. Huitong Construction Group | Hubei Forbon vs. Ningbo Construction Co | Hubei Forbon vs. Spring Airlines Co | Hubei Forbon vs. Zhejiang Yayi Metal |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |