Correlation Between Sinofibers Technology and JCHX Mining
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By analyzing existing cross correlation between Sinofibers Technology Co and JCHX Mining Management, you can compare the effects of market volatilities on Sinofibers Technology 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 Sinofibers Technology with a short position of JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and JCHX Mining.
Diversification Opportunities for Sinofibers Technology and JCHX Mining
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sinofibers and JCHX is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology 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 Sinofibers Technology 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 Sinofibers Technology 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 Sinofibers Technology i.e., Sinofibers Technology and JCHX Mining go up and down completely randomly.
Pair Corralation between Sinofibers Technology and JCHX Mining
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to under-perform the JCHX Mining. In addition to that, Sinofibers Technology is 1.27 times more volatile than JCHX Mining Management. It trades about -0.23 of its total potential returns per unit of risk. JCHX Mining Management is currently generating about -0.07 per unit of volatility. If you would invest 4,089 in JCHX Mining Management on August 29, 2024 and sell it today you would lose (194.00) from holding JCHX Mining Management or give up 4.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. JCHX Mining Management
Performance |
| Timeline |
| Sinofibers Technology |
| JCHX Mining Management |
Sinofibers Technology and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and JCHX Mining
The main advantage of trading using opposite Sinofibers Technology and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology 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.| Sinofibers Technology vs. Zijin Mining Group | Sinofibers Technology vs. Wanhua Chemical Group | Sinofibers Technology vs. Baoshan Iron Steel | Sinofibers Technology vs. Shandong Gold Mining |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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