Correlation Between Jiangxi Ganfeng and Jahen Household
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Jahen Household Products, you can compare the effects of market volatilities on Jiangxi Ganfeng and Jahen Household 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 Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Jahen Household.
Diversification Opportunities for Jiangxi Ganfeng and Jahen Household
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Jahen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Jahen Household Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahen Household Products 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 Jahen Household. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahen Household Products has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Jahen Household go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Jahen Household
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 1.11 times more return on investment than Jahen Household. However, Jiangxi Ganfeng is 1.11 times more volatile than Jahen Household Products. It trades about 0.08 of its potential returns per unit of risk. Jahen Household Products is currently generating about 0.06 per unit of risk. If you would invest 3,240 in Jiangxi Ganfeng Lithium on September 1, 2024 and sell it today you would earn a total of 965.00 from holding Jiangxi Ganfeng Lithium or generate 29.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. Jahen Household Products
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Jahen Household Products |
Jiangxi Ganfeng and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Jahen Household
The main advantage of trading using opposite Jiangxi Ganfeng and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Jahen Household 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 Jahen Household will offset losses from the drop in Jahen Household's long position.| Jiangxi Ganfeng vs. China Minmetals Rare | Jiangxi Ganfeng vs. Shenzhen Kexin Communication | Jiangxi Ganfeng vs. Pengxin International Mining | Jiangxi Ganfeng vs. Guangdong Shenglu Telecommunication |
| Jahen Household vs. Zijin Mining Group | Jahen Household vs. Wanhua Chemical Group | Jahen Household vs. Baoshan Iron Steel | Jahen Household 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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