Correlation Between Jiangxi Ganfeng and Kangxin New
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Kangxin New Materials, you can compare the effects of market volatilities on Jiangxi Ganfeng and Kangxin New 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 Kangxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Kangxin New.
Diversification Opportunities for Jiangxi Ganfeng and Kangxin New
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Kangxin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Kangxin New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangxin New Materials 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 Kangxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangxin New Materials has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Kangxin New go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Kangxin New
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 1.34 times more return on investment than Kangxin New. However, Jiangxi Ganfeng is 1.34 times more volatile than Kangxin New Materials. It trades about 0.17 of its potential returns per unit of risk. Kangxin New Materials is currently generating about 0.18 per unit of risk. If you would invest 3,426 in Jiangxi Ganfeng Lithium on August 28, 2024 and sell it today you would earn a total of 579.00 from holding Jiangxi Ganfeng Lithium or generate 16.9% 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. Kangxin New Materials
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Kangxin New Materials |
Jiangxi Ganfeng and Kangxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Kangxin New
The main advantage of trading using opposite Jiangxi Ganfeng and Kangxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Kangxin New 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 Kangxin New will offset losses from the drop in Kangxin New's long position.| Jiangxi Ganfeng vs. Northking Information Technology | Jiangxi Ganfeng vs. Guangzhou KingTeller Technology | Jiangxi Ganfeng vs. Linewell Software Co | Jiangxi Ganfeng vs. Tianshui Huatian Technology |
| Kangxin New vs. Zijin Mining Group | Kangxin New vs. Wanhua Chemical Group | Kangxin New vs. Baoshan Iron Steel | Kangxin New 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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