Correlation Between Hubei Dinglong and JCHX Mining
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By analyzing existing cross correlation between Hubei Dinglong Chemical and JCHX Mining Management, you can compare the effects of market volatilities on Hubei Dinglong 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 Hubei Dinglong with a short position of JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Dinglong and JCHX Mining.
Diversification Opportunities for Hubei Dinglong and JCHX Mining
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hubei and JCHX is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Dinglong Chemical 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 Hubei Dinglong 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 Hubei Dinglong Chemical 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 Hubei Dinglong i.e., Hubei Dinglong and JCHX Mining go up and down completely randomly.
Pair Corralation between Hubei Dinglong and JCHX Mining
Assuming the 90 days trading horizon Hubei Dinglong Chemical is expected to generate 1.14 times more return on investment than JCHX Mining. However, Hubei Dinglong is 1.14 times more volatile than JCHX Mining Management. It trades about -0.03 of its potential returns per unit of risk. JCHX Mining Management is currently generating about -0.07 per unit of risk. If you would invest 2,759 in Hubei Dinglong Chemical on August 25, 2024 and sell it today you would lose (80.00) from holding Hubei Dinglong Chemical or give up 2.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hubei Dinglong Chemical vs. JCHX Mining Management
Performance |
| Timeline |
| Hubei Dinglong Chemical |
| JCHX Mining Management |
Hubei Dinglong and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Dinglong and JCHX Mining
The main advantage of trading using opposite Hubei Dinglong and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Dinglong 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.| Hubei Dinglong vs. Zijin Mining Group | Hubei Dinglong vs. Wanhua Chemical Group | Hubei Dinglong vs. Baoshan Iron Steel | Hubei Dinglong vs. Shandong Gold Mining |
| JCHX Mining vs. Chinese Universe Publishing | JCHX Mining vs. Kuangda Technology Group | JCHX Mining vs. Sinofibers Technology Co | JCHX Mining vs. Shandong Publishing Media |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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