Correlation Between Nippon Paint and Ganfeng Lithium
Can any of the company-specific risk be diversified away by investing in both Nippon Paint and Ganfeng Lithium 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 Nippon Paint and Ganfeng Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nippon Paint Holdings and Ganfeng Lithium Co, you can compare the effects of market volatilities on Nippon Paint and Ganfeng Lithium 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 Nippon Paint with a short position of Ganfeng Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nippon Paint and Ganfeng Lithium.
Diversification Opportunities for Nippon Paint and Ganfeng Lithium
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nippon and Ganfeng is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nippon Paint Holdings and Ganfeng Lithium Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ganfeng Lithium and Nippon Paint 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 Nippon Paint Holdings are associated (or correlated) with Ganfeng Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ganfeng Lithium has no effect on the direction of Nippon Paint i.e., Nippon Paint and Ganfeng Lithium go up and down completely randomly.
Pair Corralation between Nippon Paint and Ganfeng Lithium
If you would invest 317.00 in Ganfeng Lithium Co on October 5, 2025 and sell it today you would earn a total of 343.00 from holding Ganfeng Lithium Co or generate 108.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Nippon Paint Holdings vs. Ganfeng Lithium Co
Performance |
| Timeline |
| Nippon Paint Holdings |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Ganfeng Lithium |
Nippon Paint and Ganfeng Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nippon Paint and Ganfeng Lithium
The main advantage of trading using opposite Nippon Paint and Ganfeng Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nippon Paint position performs unexpectedly, Ganfeng Lithium 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 Ganfeng Lithium will offset losses from the drop in Ganfeng Lithium's long position.| Nippon Paint vs. Nitto Denko | Nippon Paint vs. Nippon Sanso Holdings | Nippon Paint vs. Industrias Penoles Sab | Nippon Paint vs. EMS CHEMIE HOLDING AG |
| Ganfeng Lithium vs. EMS CHEMIE HOLDING AG | Ganfeng Lithium vs. Nitto Denko | Ganfeng Lithium vs. Nippon Sanso Holdings | Ganfeng Lithium vs. Yara International ASA |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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