Correlation Between Jiangxi Ganfeng and Shenzhen Dynanonic
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Shenzhen Dynanonic Co, you can compare the effects of market volatilities on Jiangxi Ganfeng and Shenzhen Dynanonic 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 Shenzhen Dynanonic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Shenzhen Dynanonic.
Diversification Opportunities for Jiangxi Ganfeng and Shenzhen Dynanonic
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Shenzhen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Shenzhen Dynanonic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Dynanonic 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 Shenzhen Dynanonic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Dynanonic has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Shenzhen Dynanonic go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Shenzhen Dynanonic
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 0.68 times more return on investment than Shenzhen Dynanonic. However, Jiangxi Ganfeng Lithium is 1.47 times less risky than Shenzhen Dynanonic. It trades about -0.05 of its potential returns per unit of risk. Shenzhen Dynanonic Co is currently generating about -0.06 per unit of risk. If you would invest 7,574 in Jiangxi Ganfeng Lithium on October 16, 2024 and sell it today you would lose (4,140) from holding Jiangxi Ganfeng Lithium or give up 54.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. Shenzhen Dynanonic Co
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Shenzhen Dynanonic |
Jiangxi Ganfeng and Shenzhen Dynanonic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Shenzhen Dynanonic
The main advantage of trading using opposite Jiangxi Ganfeng and Shenzhen Dynanonic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Shenzhen Dynanonic 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 Shenzhen Dynanonic will offset losses from the drop in Shenzhen Dynanonic's long position.| Jiangxi Ganfeng vs. JiShi Media Co | Jiangxi Ganfeng vs. Beijing Enlight Media | Jiangxi Ganfeng vs. Luyin Investment Group | Jiangxi Ganfeng vs. Changjiang Publishing Media |
| Shenzhen Dynanonic vs. Jinling Hotel Corp | Shenzhen Dynanonic vs. Innovative Medical Management | Shenzhen Dynanonic vs. Tinavi Medical Technologies | Shenzhen Dynanonic vs. Hubei Geoway Investment |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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