Correlation Between Shandong Gold and Jiangxi Ganfeng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Gold Mining and Jiangxi Ganfeng Lithium, you can compare the effects of market volatilities on Shandong Gold 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 Gold with a short position of Jiangxi Ganfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Jiangxi Ganfeng.
Diversification Opportunities for Shandong Gold and Jiangxi Ganfeng
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Jiangxi is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining 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 Gold 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 Gold Mining 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 Gold i.e., Shandong Gold and Jiangxi Ganfeng go up and down completely randomly.
Pair Corralation between Shandong Gold and Jiangxi Ganfeng
Assuming the 90 days trading horizon Shandong Gold Mining is expected to under-perform the Jiangxi Ganfeng. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Gold Mining is 3.27 times less risky than Jiangxi Ganfeng. The stock trades about -0.37 of its potential returns per unit of risk. The 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Jiangxi Ganfeng Lithium
Performance |
| Timeline |
| Shandong Gold Mining |
| Jiangxi Ganfeng Lithium |
Shandong Gold and Jiangxi Ganfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Jiangxi Ganfeng
The main advantage of trading using opposite Shandong Gold and Jiangxi Ganfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold 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 Gold vs. Guangzhou Zhujiang Brewery | Shandong Gold vs. Tjk Machinery Tianjin | Shandong Gold vs. Chengdu Spaceon Electronics | Shandong Gold vs. JCHX Mining Management |
| Jiangxi Ganfeng vs. Everdisplay Optronics Shanghai | Jiangxi Ganfeng vs. Easyhome New Retail | Jiangxi Ganfeng vs. Hubei Geoway Investment | Jiangxi Ganfeng vs. Tieling Newcity Investment |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Transaction History View history of all your transactions and understand their impact on 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 |