Correlation Between Wanhua Chemical and JCHX Mining
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By analyzing existing cross correlation between Wanhua Chemical Group and JCHX Mining Management, you can compare the effects of market volatilities on Wanhua Chemical 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 Wanhua Chemical with a short position of JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wanhua Chemical and JCHX Mining.
Diversification Opportunities for Wanhua Chemical and JCHX Mining
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wanhua and JCHX is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Wanhua Chemical Group 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 Wanhua Chemical 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 Wanhua Chemical Group 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 Wanhua Chemical i.e., Wanhua Chemical and JCHX Mining go up and down completely randomly.
Pair Corralation between Wanhua Chemical and JCHX Mining
Assuming the 90 days trading horizon Wanhua Chemical Group is expected to under-perform the JCHX Mining. But the stock apears to be less risky and, when comparing its historical volatility, Wanhua Chemical Group is 1.39 times less risky than JCHX Mining. The stock trades about -0.11 of its potential returns per unit of risk. The JCHX Mining Management is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,009 in JCHX Mining Management on October 26, 2024 and sell it today you would earn a total of 17.00 from holding JCHX Mining Management or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wanhua Chemical Group vs. JCHX Mining Management
Performance |
| Timeline |
| Wanhua Chemical Group |
| JCHX Mining Management |
Wanhua Chemical and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wanhua Chemical and JCHX Mining
The main advantage of trading using opposite Wanhua Chemical and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wanhua Chemical 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.| Wanhua Chemical vs. GuoChuang Software Co | Wanhua Chemical vs. ZYF Lopsking Aluminum | Wanhua Chemical vs. Guangdong Jingyi Metal | Wanhua Chemical vs. Digiwin Software Co |
| 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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