Correlation Between Changjiang Publishing and Jiangxi Ganfeng
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By analyzing existing cross correlation between Changjiang Publishing Media and Jiangxi Ganfeng Lithium, you can compare the effects of market volatilities on Changjiang Publishing 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 Changjiang Publishing with a short position of Jiangxi Ganfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and Jiangxi Ganfeng.
Diversification Opportunities for Changjiang Publishing and Jiangxi Ganfeng
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Changjiang and Jiangxi is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media 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 Changjiang Publishing 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 Changjiang Publishing Media 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 Changjiang Publishing i.e., Changjiang Publishing and Jiangxi Ganfeng go up and down completely randomly.
Pair Corralation between Changjiang Publishing and Jiangxi Ganfeng
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to generate 0.91 times more return on investment than Jiangxi Ganfeng. However, Changjiang Publishing Media is 1.09 times less risky than Jiangxi Ganfeng. It trades about 0.05 of its potential returns per unit of risk. Jiangxi Ganfeng Lithium is currently generating about -0.05 per unit of risk. If you would invest 562.00 in Changjiang Publishing Media on October 16, 2024 and sell it today you would earn a total of 282.00 from holding Changjiang Publishing Media or generate 50.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. Jiangxi Ganfeng Lithium
Performance |
| Timeline |
| Changjiang Publishing |
| Jiangxi Ganfeng Lithium |
Changjiang Publishing and Jiangxi Ganfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and Jiangxi Ganfeng
The main advantage of trading using opposite Changjiang Publishing and Jiangxi Ganfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing 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.The idea behind Changjiang Publishing Media and Jiangxi Ganfeng Lithium pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Jiangxi Ganfeng vs. JiShi Media Co | Jiangxi Ganfeng vs. Beijing Enlight Media | Jiangxi Ganfeng vs. Luyin Investment Group | Jiangxi Ganfeng vs. Changjiang Publishing Media |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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