Correlation Between Jiangxi Ganfeng and Zhejiang Yongjin
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on Jiangxi Ganfeng and Zhejiang Yongjin 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 Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Zhejiang Yongjin.
Diversification Opportunities for Jiangxi Ganfeng and Zhejiang Yongjin
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Zhejiang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Zhejiang Yongjin Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yongjin Metal 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 Zhejiang Yongjin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yongjin Metal has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Zhejiang Yongjin
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 2.6 times more return on investment than Zhejiang Yongjin. However, Jiangxi Ganfeng is 2.6 times more volatile than Zhejiang Yongjin Metal. It trades about 0.17 of its potential returns per unit of risk. Zhejiang Yongjin Metal is currently generating about -0.19 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| Zhejiang Yongjin Metal |
Jiangxi Ganfeng and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and Zhejiang Yongjin
The main advantage of trading using opposite Jiangxi Ganfeng and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Zhejiang Yongjin 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 Zhejiang Yongjin will offset losses from the drop in Zhejiang Yongjin'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 |
| Zhejiang Yongjin vs. Wanhua Chemical Group | Zhejiang Yongjin vs. Shandong Gold Mining | Zhejiang Yongjin vs. Rongsheng Petrochemical Co | Zhejiang Yongjin vs. Inner Mongolia BaoTou |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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