Correlation Between Shandong Polymer and Jiangxi Ganfeng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Polymer Biochemicals and Jiangxi Ganfeng Lithium, you can compare the effects of market volatilities on Shandong Polymer and Jiangxi Ganfeng 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 Shandong Polymer with a short position of Jiangxi Ganfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Jiangxi Ganfeng.
Diversification Opportunities for Shandong Polymer and Jiangxi Ganfeng
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Jiangxi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Jiangxi Ganfeng Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Ganfeng Lithium and Shandong Polymer 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 Shandong Polymer Biochemicals are associated (or correlated) with Jiangxi Ganfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Ganfeng Lithium has no effect on the direction of Shandong Polymer i.e., Shandong Polymer and Jiangxi Ganfeng go up and down completely randomly.
Pair Corralation between Shandong Polymer and Jiangxi Ganfeng
Assuming the 90 days trading horizon Shandong Polymer is expected to generate 1.22 times less return on investment than Jiangxi Ganfeng. But when comparing it to its historical volatility, Shandong Polymer Biochemicals is 1.36 times less risky than Jiangxi Ganfeng. It trades about 0.09 of its potential returns per unit of risk. Jiangxi Ganfeng Lithium is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,209 in Jiangxi Ganfeng Lithium on September 3, 2024 and sell it today you would earn a total of 996.00 from holding Jiangxi Ganfeng Lithium or generate 31.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. Jiangxi Ganfeng Lithium
Performance |
| Timeline |
| Shandong Polymer Bio |
| Jiangxi Ganfeng Lithium |
Shandong Polymer and Jiangxi Ganfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Jiangxi Ganfeng
The main advantage of trading using opposite Shandong Polymer and Jiangxi Ganfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer position performs unexpectedly, Jiangxi Ganfeng 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 Jiangxi Ganfeng will offset losses from the drop in Jiangxi Ganfeng's long position.| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Rongsheng Petrochemical Co | Shandong Polymer vs. Hoshine Silicon Ind |
| Jiangxi Ganfeng vs. Dymatic Chemicals | Jiangxi Ganfeng vs. Yingde Greatchem Chemicals | Jiangxi Ganfeng vs. Ningxia Younglight Chemicals | Jiangxi Ganfeng vs. Shandong Polymer Biochemicals |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |