Correlation Between China Asset and JCHX Mining
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By analyzing existing cross correlation between China Asset Management and JCHX Mining Management, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and JCHX Mining.
Diversification Opportunities for China Asset and JCHX Mining
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and JCHX is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management 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 China Asset 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 China Asset Management 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 China Asset i.e., China Asset and JCHX Mining go up and down completely randomly.
Pair Corralation between China Asset and JCHX Mining
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.52 times more return on investment than JCHX Mining. However, China Asset Management is 1.92 times less risky than JCHX Mining. It trades about 0.2 of its potential returns per unit of risk. JCHX Mining Management is currently generating about 0.08 per unit of risk. If you would invest 323.00 in China Asset Management on September 13, 2024 and sell it today you would earn a total of 18.00 from holding China Asset Management or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Asset Management vs. JCHX Mining Management
Performance |
| Timeline |
| China Asset Management |
| JCHX Mining Management |
China Asset and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and JCHX Mining
The main advantage of trading using opposite China Asset and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.| China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited | China Asset vs. China Construction Bank |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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