Correlation Between Jiangxi Ganfeng and Hubei Xingfa
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Jiangxi Ganfeng and Hubei Xingfa 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 Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Hubei Xingfa.
Diversification Opportunities for Jiangxi Ganfeng and Hubei Xingfa
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Hubei is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals 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 Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Hubei Xingfa
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 1.6 times more return on investment than Hubei Xingfa. However, Jiangxi Ganfeng is 1.6 times more volatile than Hubei Xingfa Chemicals. It trades about 0.27 of its potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about 0.03 per unit of risk. If you would invest 3,197 in Jiangxi Ganfeng Lithium on August 25, 2024 and sell it today you would earn a total of 911.00 from holding Jiangxi Ganfeng Lithium or generate 28.5% 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. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Hubei Xingfa Chemicals |
Jiangxi Ganfeng and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Hubei Xingfa
The main advantage of trading using opposite Jiangxi Ganfeng and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Hubei Xingfa 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 Hubei Xingfa will offset losses from the drop in Hubei Xingfa's long position.| Jiangxi Ganfeng vs. City Development Environment | Jiangxi Ganfeng vs. Fushun Special Steel | Jiangxi Ganfeng vs. Wangneng Environment Co | Jiangxi Ganfeng vs. Shenzhen MYS Environmental |
| Hubei Xingfa vs. Guangzhou Ruoyuchen Information | Hubei Xingfa vs. Northking Information Technology | Hubei Xingfa vs. Tonghua Grape Wine | Hubei Xingfa vs. Xiamen Goldenhome Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |