Correlation Between Jiangxi Ganfeng and GRIPM Advanced
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and GRIPM Advanced Materials, you can compare the effects of market volatilities on Jiangxi Ganfeng and GRIPM Advanced 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 GRIPM Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and GRIPM Advanced.
Diversification Opportunities for Jiangxi Ganfeng and GRIPM Advanced
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and GRIPM is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and GRIPM Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIPM Advanced 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 GRIPM Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIPM Advanced Materials has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and GRIPM Advanced go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and GRIPM Advanced
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 1.64 times more return on investment than GRIPM Advanced. However, Jiangxi Ganfeng is 1.64 times more volatile than GRIPM Advanced Materials. It trades about 0.23 of its potential returns per unit of risk. GRIPM Advanced Materials is currently generating about 0.18 per unit of risk. If you would invest 3,398 in Jiangxi Ganfeng Lithium on September 1, 2024 and sell it today you would earn a total of 807.00 from holding Jiangxi Ganfeng Lithium or generate 23.75% 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. GRIPM Advanced Materials
Performance |
| Timeline |
| Jiangxi Ganfeng Lithium |
| GRIPM Advanced Materials |
Jiangxi Ganfeng and GRIPM Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Ganfeng and GRIPM Advanced
The main advantage of trading using opposite Jiangxi Ganfeng and GRIPM Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, GRIPM Advanced 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 GRIPM Advanced will offset losses from the drop in GRIPM Advanced's long position.| Jiangxi Ganfeng vs. China Minmetals Rare | Jiangxi Ganfeng vs. Shenzhen Kexin Communication | Jiangxi Ganfeng vs. Pengxin International Mining | Jiangxi Ganfeng vs. Guangdong Shenglu Telecommunication |
| GRIPM Advanced vs. Chongqing Shunbo Aluminum | GRIPM Advanced vs. ZYF Lopsking Aluminum | GRIPM Advanced vs. Guangzhou Tinci Materials | GRIPM Advanced vs. Chahua Modern Housewares |
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 CEOs Directory module to screen CEOs from public companies around the world.
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