Correlation Between Ganfeng Lithium and ASP Isotopes
Can any of the company-specific risk be diversified away by investing in both Ganfeng Lithium and ASP Isotopes at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ganfeng Lithium and ASP Isotopes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ganfeng Lithium Co and ASP Isotopes Common, you can compare the effects of market volatilities on Ganfeng Lithium and ASP Isotopes 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 Ganfeng Lithium with a short position of ASP Isotopes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ganfeng Lithium and ASP Isotopes.
Diversification Opportunities for Ganfeng Lithium and ASP Isotopes
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ganfeng and ASP is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ganfeng Lithium Co and ASP Isotopes Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASP Isotopes Common and Ganfeng Lithium 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 Ganfeng Lithium Co are associated (or correlated) with ASP Isotopes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASP Isotopes Common has no effect on the direction of Ganfeng Lithium i.e., Ganfeng Lithium and ASP Isotopes go up and down completely randomly.
Pair Corralation between Ganfeng Lithium and ASP Isotopes
Assuming the 90 days horizon Ganfeng Lithium is expected to generate 3.84 times less return on investment than ASP Isotopes. But when comparing it to its historical volatility, Ganfeng Lithium Co is 1.43 times less risky than ASP Isotopes. It trades about 0.03 of its potential returns per unit of risk. ASP Isotopes Common is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 309.00 in ASP Isotopes Common on November 3, 2024 and sell it today you would earn a total of 266.00 from holding ASP Isotopes Common or generate 86.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Ganfeng Lithium Co vs. ASP Isotopes Common
Performance |
| Timeline |
| Ganfeng Lithium |
| ASP Isotopes Common |
Ganfeng Lithium and ASP Isotopes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ganfeng Lithium and ASP Isotopes
The main advantage of trading using opposite Ganfeng Lithium and ASP Isotopes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ganfeng Lithium position performs unexpectedly, ASP Isotopes 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 ASP Isotopes will offset losses from the drop in ASP Isotopes' long position.| Ganfeng Lithium vs. BioLargo | Ganfeng Lithium vs. Shin Etsu Chemical Co | Ganfeng Lithium vs. Lsb Industries | Ganfeng Lithium vs. Braskem SA Class |
| ASP Isotopes vs. Altech Batteries Limited | ASP Isotopes vs. Asahi Kaisei Corp | ASP Isotopes vs. Alumifuel Pwr Corp | ASP Isotopes vs. AdvanSix |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |