Correlation Between Jiangxi Ganfeng and Yingde Greatchem
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Jiangxi Ganfeng and Yingde Greatchem 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 Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Yingde Greatchem.
Diversification Opportunities for Jiangxi Ganfeng and Yingde Greatchem
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Yingde is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che 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 Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Yingde Greatchem
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to under-perform the Yingde Greatchem. But the stock apears to be less risky and, when comparing its historical volatility, Jiangxi Ganfeng Lithium is 1.15 times less risky than Yingde Greatchem. The stock trades about -0.03 of its potential returns per unit of risk. The Yingde Greatchem Chemicals is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 3,850 in Yingde Greatchem Chemicals on August 25, 2024 and sell it today you would lose (1,384) from holding Yingde Greatchem Chemicals or give up 35.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 71.97% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Yingde Greatchem Che |
Jiangxi Ganfeng and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Yingde Greatchem
The main advantage of trading using opposite Jiangxi Ganfeng and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem'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 |
| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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