Correlation Between Zhongtong Guomai and Jiangxi Ganfeng
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Jiangxi Ganfeng Lithium, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Jiangxi Ganfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Jiangxi Ganfeng.
Diversification Opportunities for Zhongtong Guomai and Jiangxi Ganfeng
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongtong and Jiangxi is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Jiangxi Ganfeng go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Jiangxi Ganfeng
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.07 times more return on investment than Jiangxi Ganfeng. However, Zhongtong Guomai is 1.07 times more volatile than Jiangxi Ganfeng Lithium. It trades about 0.05 of its potential returns per unit of risk. Jiangxi Ganfeng Lithium is currently generating about 0.02 per unit of risk. If you would invest 867.00 in Zhongtong Guomai Communication on September 5, 2024 and sell it today you would earn a total of 279.00 from holding Zhongtong Guomai Communication or generate 32.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Jiangxi Ganfeng Lithium
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Jiangxi Ganfeng Lithium |
Zhongtong Guomai and Jiangxi Ganfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Jiangxi Ganfeng
The main advantage of trading using opposite Zhongtong Guomai and Jiangxi Ganfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. 360 Security Technology | Zhongtong Guomai vs. Tianshui Huatian Technology | Zhongtong Guomai vs. Sinofibers Technology Co | Zhongtong Guomai vs. Hoshine Silicon Ind |
| Jiangxi Ganfeng vs. Suzhou Weizhixiang Food | Jiangxi Ganfeng vs. Olympic Circuit Technology | Jiangxi Ganfeng vs. Tianshui Huatian Technology | Jiangxi Ganfeng vs. Kangping Technology Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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