Correlation Between Huaxia Fund and JCHX Mining
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By analyzing existing cross correlation between Huaxia Fund Management and JCHX Mining Management, you can compare the effects of market volatilities on Huaxia Fund 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 Huaxia Fund with a short position of JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and JCHX Mining.
Diversification Opportunities for Huaxia Fund and JCHX Mining
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Huaxia and JCHX is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund 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 Huaxia Fund 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 Huaxia Fund 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 Huaxia Fund i.e., Huaxia Fund and JCHX Mining go up and down completely randomly.
Pair Corralation between Huaxia Fund and JCHX Mining
Assuming the 90 days trading horizon Huaxia Fund is expected to generate 3.44 times less return on investment than JCHX Mining. But when comparing it to its historical volatility, Huaxia Fund Management is 2.34 times less risky than JCHX Mining. It trades about 0.02 of its potential returns per unit of risk. JCHX Mining Management is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,200 in JCHX Mining Management on August 29, 2024 and sell it today you would earn a total of 695.00 from holding JCHX Mining Management or generate 21.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. JCHX Mining Management
Performance |
| Timeline |
| Huaxia Fund Management |
| JCHX Mining Management |
Huaxia Fund and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and JCHX Mining
The main advantage of trading using opposite Huaxia Fund and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund 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.| Huaxia Fund vs. Jonjee Hi tech Industrial | Huaxia Fund vs. Guangzhou Jinyi Media | Huaxia Fund vs. Southern PublishingMedia Co | Huaxia Fund vs. Duzhe Publishing Media |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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