Correlation Between Jiangxi Ganfeng and Fujian Nanwang
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Fujian Nanwang Environment, you can compare the effects of market volatilities on Jiangxi Ganfeng and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Fujian Nanwang.
Diversification Opportunities for Jiangxi Ganfeng and Fujian Nanwang
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Fujian is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Fujian Nanwang
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 2.61 times more return on investment than Fujian Nanwang. However, Jiangxi Ganfeng is 2.61 times more volatile than Fujian Nanwang Environment. It trades about 0.22 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.19 per unit of risk. If you would invest 3,331 in Jiangxi Ganfeng Lithium on August 30, 2024 and sell it today you would earn a total of 783.00 from holding Jiangxi Ganfeng Lithium or generate 23.51% 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. Fujian Nanwang Environment
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Fujian Nanwang Envir |
Jiangxi Ganfeng and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Fujian Nanwang
The main advantage of trading using opposite Jiangxi Ganfeng and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| Jiangxi Ganfeng vs. Heilongjiang Publishing Media | Jiangxi Ganfeng vs. Northking Information Technology | Jiangxi Ganfeng vs. Shenzhen SDG Information | Jiangxi Ganfeng vs. Jiangsu Phoenix Publishing |
| Fujian Nanwang vs. Shandong Gold Mining | Fujian Nanwang vs. Rongsheng Petrochemical Co | Fujian Nanwang vs. Inner Mongolia BaoTou | Fujian Nanwang vs. Jiangxi Ganfeng Lithium |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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