Correlation Between Jiangxi Ganfeng and Dow Jones
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Dow Jones Industrial, you can compare the effects of market volatilities on Jiangxi Ganfeng and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Dow Jones.
Diversification Opportunities for Jiangxi Ganfeng and Dow Jones
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Dow is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Dow Jones go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Dow Jones
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to generate 4.79 times more return on investment than Dow Jones. However, Jiangxi Ganfeng is 4.79 times more volatile than Dow Jones Industrial. It trades about 0.27 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.15 per unit of risk. If you would invest 3,315 in Jiangxi Ganfeng Lithium on August 24, 2024 and sell it today you would earn a total of 964.00 from holding Jiangxi Ganfeng Lithium or generate 29.08% 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. Dow Jones Industrial
Performance |
| Timeline |
Jiangxi Ganfeng and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Jiangxi Ganfeng Lithium
Pair trading matchups for Jiangxi Ganfeng
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Jiangxi Ganfeng and Dow Jones
The main advantage of trading using opposite Jiangxi Ganfeng and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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