Correlation Between Hubei Geoway and Jiangxi Ganfeng
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By analyzing existing cross correlation between Hubei Geoway Investment and Jiangxi Ganfeng Lithium, you can compare the effects of market volatilities on Hubei Geoway 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 Hubei Geoway with a short position of Jiangxi Ganfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Jiangxi Ganfeng.
Diversification Opportunities for Hubei Geoway and Jiangxi Ganfeng
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hubei and Jiangxi is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment 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 Hubei Geoway 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 Hubei Geoway Investment 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 Hubei Geoway i.e., Hubei Geoway and Jiangxi Ganfeng go up and down completely randomly.
Pair Corralation between Hubei Geoway and Jiangxi Ganfeng
Assuming the 90 days trading horizon Hubei Geoway is expected to generate 2.11 times less return on investment than Jiangxi Ganfeng. But when comparing it to its historical volatility, Hubei Geoway Investment is 1.34 times less risky than Jiangxi Ganfeng. It trades about 0.17 of its potential returns per unit of risk. Jiangxi Ganfeng Lithium is currently generating about 0.27 of returns per unit of risk over similar time horizon. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Jiangxi Ganfeng Lithium
Performance |
| Timeline |
| Hubei Geoway Investment |
| Jiangxi Ganfeng Lithium |
Hubei Geoway and Jiangxi Ganfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Jiangxi Ganfeng
The main advantage of trading using opposite Hubei Geoway and Jiangxi Ganfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway 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.| Hubei Geoway vs. Zijin Mining Group | Hubei Geoway vs. Wanhua Chemical Group | Hubei Geoway vs. Baoshan Iron Steel | Hubei Geoway vs. Shandong Gold Mining |
| Jiangxi Ganfeng vs. City Development Environment | Jiangxi Ganfeng vs. Fushun Special Steel | Jiangxi Ganfeng vs. Wangneng Environment Co | Jiangxi Ganfeng vs. Shenzhen MYS Environmental |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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