Correlation Between Jiangxi Ganfeng and Shaanxi Beiyuan
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Shaanxi Beiyuan Chemical, you can compare the effects of market volatilities on Jiangxi Ganfeng and Shaanxi Beiyuan 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 Shaanxi Beiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Shaanxi Beiyuan.
Diversification Opportunities for Jiangxi Ganfeng and Shaanxi Beiyuan
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Shaanxi is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Shaanxi Beiyuan Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Beiyuan Chemical 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 Shaanxi Beiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Beiyuan Chemical has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Shaanxi Beiyuan go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Shaanxi Beiyuan
Assuming the 90 days trading horizon Jiangxi Ganfeng is expected to generate 8.88 times less return on investment than Shaanxi Beiyuan. In addition to that, Jiangxi Ganfeng is 3.31 times more volatile than Shaanxi Beiyuan Chemical. It trades about 0.0 of its total potential returns per unit of risk. Shaanxi Beiyuan Chemical is currently generating about 0.08 per unit of volatility. If you would invest 439.00 in Shaanxi Beiyuan Chemical on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Shaanxi Beiyuan Chemical or generate 2.05% 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. Shaanxi Beiyuan Chemical
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Shaanxi Beiyuan Chemical |
Jiangxi Ganfeng and Shaanxi Beiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Shaanxi Beiyuan
The main advantage of trading using opposite Jiangxi Ganfeng and Shaanxi Beiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Shaanxi Beiyuan 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 Shaanxi Beiyuan will offset losses from the drop in Shaanxi Beiyuan's long position.| Jiangxi Ganfeng vs. Postal Savings Bank | Jiangxi Ganfeng vs. By health | Jiangxi Ganfeng vs. Everjoy Health Group | Jiangxi Ganfeng vs. Xiamen Bank Co |
| Shaanxi Beiyuan vs. HUAQIN TECHNOLOGY LTD | Shaanxi Beiyuan vs. Jinhe Biotechnology Co | Shaanxi Beiyuan vs. Shaanxi Energy Investment | Shaanxi Beiyuan vs. Zhejiang Construction Investment |
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.
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