Correlation Between Jiangxi Ganfeng and Qinghai Salt
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Qinghai Salt Lake, you can compare the effects of market volatilities on Jiangxi Ganfeng and Qinghai Salt 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 Jiangxi Ganfeng with a short position of Qinghai Salt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Qinghai Salt.
Diversification Opportunities for Jiangxi Ganfeng and Qinghai Salt
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Qinghai is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Qinghai Salt Lake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghai Salt Lake and Jiangxi Ganfeng 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 Jiangxi Ganfeng Lithium are associated (or correlated) with Qinghai Salt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghai Salt Lake has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Qinghai Salt go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Qinghai Salt
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to under-perform the Qinghai Salt. In addition to that, Jiangxi Ganfeng is 1.55 times more volatile than Qinghai Salt Lake. It trades about -0.3 of its total potential returns per unit of risk. Qinghai Salt Lake is currently generating about -0.29 per unit of volatility. If you would invest 1,817 in Qinghai Salt Lake on September 24, 2024 and sell it today you would lose (149.00) from holding Qinghai Salt Lake or give up 8.2% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. Qinghai Salt Lake
Performance |
Timeline |
Jiangxi Ganfeng Lithium |
Qinghai Salt Lake |
Jiangxi Ganfeng and Qinghai Salt Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangxi Ganfeng and Qinghai Salt
The main advantage of trading using opposite Jiangxi Ganfeng and Qinghai Salt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Qinghai Salt 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 Qinghai Salt will offset losses from the drop in Qinghai Salt's long position.Jiangxi Ganfeng vs. Zijin Mining Group | Jiangxi Ganfeng vs. Wanhua Chemical Group | Jiangxi Ganfeng vs. Baoshan Iron Steel | Jiangxi Ganfeng vs. Shandong Gold Mining |
Qinghai Salt vs. Zijin Mining Group | Qinghai Salt vs. Wanhua Chemical Group | Qinghai Salt vs. Baoshan Iron Steel | Qinghai Salt vs. Shandong Gold Mining |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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