Correlation Between Jiangxi Ganfeng and Sinomine Resource
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By analyzing existing cross correlation between Jiangxi Ganfeng Lithium and Sinomine Resource Exploration, you can compare the effects of market volatilities on Jiangxi Ganfeng and Sinomine Resource 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 Sinomine Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Ganfeng and Sinomine Resource.
Diversification Opportunities for Jiangxi Ganfeng and Sinomine Resource
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Sinomine is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Ganfeng Lithium and Sinomine Resource Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomine Resource 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 Sinomine Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomine Resource has no effect on the direction of Jiangxi Ganfeng i.e., Jiangxi Ganfeng and Sinomine Resource go up and down completely randomly.
Pair Corralation between Jiangxi Ganfeng and Sinomine Resource
Assuming the 90 days trading horizon Jiangxi Ganfeng Lithium is expected to under-perform the Sinomine Resource. But the stock apears to be less risky and, when comparing its historical volatility, Jiangxi Ganfeng Lithium is 1.07 times less risky than Sinomine Resource. The stock trades about -0.03 of its potential returns per unit of risk. The Sinomine Resource Exploration is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,529 in Sinomine Resource Exploration on September 20, 2024 and sell it today you would lose (867.00) from holding Sinomine Resource Exploration or give up 19.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 99.79% |
Values | Daily Returns |
Jiangxi Ganfeng Lithium vs. Sinomine Resource Exploration
Performance |
Timeline |
Jiangxi Ganfeng Lithium |
Sinomine Resource |
Jiangxi Ganfeng and Sinomine Resource Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangxi Ganfeng and Sinomine Resource
The main advantage of trading using opposite Jiangxi Ganfeng and Sinomine Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Ganfeng position performs unexpectedly, Sinomine Resource 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 Sinomine Resource will offset losses from the drop in Sinomine Resource's long position.Jiangxi Ganfeng vs. Zhejiang Publishing Media | Jiangxi Ganfeng vs. Liuzhou Chemical Industry | Jiangxi Ganfeng vs. Heilongjiang Publishing Media | Jiangxi Ganfeng vs. Guizhou Chanhen Chemical |
Sinomine Resource vs. Emdoor Information Co | Sinomine Resource vs. Chengdu Xingrong Investment | Sinomine Resource vs. China Sports Industry | Sinomine Resource vs. Everdisplay Optronics Shanghai |
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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