Correlation Between Road Environment and Jiangxi Ganfeng
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By analyzing existing cross correlation between Road Environment Technology and Jiangxi Ganfeng Lithium, you can compare the effects of market volatilities on Road Environment 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 Road Environment with a short position of Jiangxi Ganfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Road Environment and Jiangxi Ganfeng.
Diversification Opportunities for Road Environment and Jiangxi Ganfeng
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Road and Jiangxi is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Road Environment Technology 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 Road Environment 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 Road Environment Technology 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 Road Environment i.e., Road Environment and Jiangxi Ganfeng go up and down completely randomly.
Pair Corralation between Road Environment and Jiangxi Ganfeng
Assuming the 90 days trading horizon Road Environment Technology is expected to under-perform the Jiangxi Ganfeng. In addition to that, Road Environment is 1.1 times more volatile than Jiangxi Ganfeng Lithium. It trades about -0.15 of its total potential returns per unit of risk. Jiangxi Ganfeng Lithium is currently generating about -0.14 per unit of volatility. If you would invest 3,596 in Jiangxi Ganfeng Lithium on October 28, 2024 and sell it today you would lose (236.00) from holding Jiangxi Ganfeng Lithium or give up 6.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Road Environment Technology vs. Jiangxi Ganfeng Lithium
Performance |
| Timeline |
| Road Environment Tec |
| Jiangxi Ganfeng Lithium |
Road Environment and Jiangxi Ganfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Road Environment and Jiangxi Ganfeng
The main advantage of trading using opposite Road Environment and Jiangxi Ganfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Road Environment 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.| Road Environment vs. Lontium Semiconductor Corp | Road Environment vs. Shannon Semiconductor Technology | Road Environment vs. Suzhou Oriental Semiconductor | Road Environment vs. Vats Liquor Chain |
| Jiangxi Ganfeng vs. Suzhou Xingye Material | Jiangxi Ganfeng vs. Shuhua Sports Co | Jiangxi Ganfeng vs. Advanced Technology Materials | Jiangxi Ganfeng vs. Anhui Transport Consulting |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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