Correlation Between Jiangxi Ganfeng and Jinhui Mining
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Jinhui Mining Co, you can compare the effects of market volatilities on Jiangxi Ganfeng and Jinhui Mining 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 Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Jinhui Mining.
Diversification Opportunities for Jiangxi Ganfeng and Jinhui Mining
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Jinhui is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining 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 Jinhui Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Mining has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Jinhui Mining go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Jinhui Mining
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 2.33 times more return on investment than Jinhui Mining. However, Jiangxi Ganfeng is 2.33 times more volatile than Jinhui Mining Co. It trades about 0.17 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about -0.11 per unit of risk. If you would invest 3,426 in Jiangxi Ganfeng Lithium on August 29, 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. Jinhui Mining Co
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Jinhui Mining |
Jiangxi Ganfeng and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Jinhui Mining
The main advantage of trading using opposite Jiangxi Ganfeng and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Jinhui Mining 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 Jinhui Mining will offset losses from the drop in Jinhui Mining'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 |
| Jinhui Mining vs. Panda Financial Holding | Jinhui Mining vs. Gome Telecom Equipment | Jinhui Mining vs. Guangdong Qunxing Toys | Jinhui Mining vs. China Everbright Bank |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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