Correlation Between Runjian Communication and JCHX Mining
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By analyzing existing cross correlation between Runjian Communication Co and JCHX Mining Management, you can compare the effects of market volatilities on Runjian Communication and JCHX Mining 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 Runjian Communication with a short position of JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Runjian Communication and JCHX Mining.
Diversification Opportunities for Runjian Communication and JCHX Mining
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Runjian and JCHX is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Runjian Communication Co and JCHX Mining Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCHX Mining Management and Runjian Communication 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 Runjian Communication Co are associated (or correlated) with JCHX Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCHX Mining Management has no effect on the direction of Runjian Communication i.e., Runjian Communication and JCHX Mining go up and down completely randomly.
Pair Corralation between Runjian Communication and JCHX Mining
Assuming the 90 days trading horizon Runjian Communication Co is expected to under-perform the JCHX Mining. In addition to that, Runjian Communication is 1.52 times more volatile than JCHX Mining Management. It trades about -0.14 of its total potential returns per unit of risk. JCHX Mining Management is currently generating about 0.2 per unit of volatility. If you would invest 3,695 in JCHX Mining Management on October 30, 2024 and sell it today you would earn a total of 296.00 from holding JCHX Mining Management or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Runjian Communication Co vs. JCHX Mining Management
Performance |
| Timeline |
| Runjian Communication |
| JCHX Mining Management |
Runjian Communication and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Runjian Communication and JCHX Mining
The main advantage of trading using opposite Runjian Communication and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Runjian Communication position performs unexpectedly, JCHX Mining 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 JCHX Mining will offset losses from the drop in JCHX Mining's long position.| Runjian Communication vs. Ningbo Bohui Chemical | Runjian Communication vs. Shaanxi Construction Machinery | Runjian Communication vs. Dymatic Chemicals | Runjian Communication vs. Shanghai Construction Group |
| JCHX Mining vs. Zijin Mining Group | JCHX Mining vs. Wanhua Chemical Group | JCHX Mining vs. Baoshan Iron Steel | JCHX Mining 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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