Correlation Between Guangxi Wuzhou and JCHX Mining
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and JCHX Mining Management, you can compare the effects of market volatilities on Guangxi Wuzhou 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 Guangxi Wuzhou with a short position of JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and JCHX Mining.
Diversification Opportunities for Guangxi Wuzhou and JCHX Mining
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guangxi and JCHX is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications 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 Guangxi Wuzhou 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 Guangxi Wuzhou Communications 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 Guangxi Wuzhou i.e., Guangxi Wuzhou and JCHX Mining go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and JCHX Mining
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to under-perform the JCHX Mining. In addition to that, Guangxi Wuzhou is 2.57 times more volatile than JCHX Mining Management. It trades about -0.01 of its total potential returns per unit of risk. JCHX Mining Management is currently generating about 0.04 per unit of volatility. If you would invest 3,967 in JCHX Mining Management on October 17, 2024 and sell it today you would earn a total of 51.00 from holding JCHX Mining Management or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. JCHX Mining Management
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| JCHX Mining Management |
Guangxi Wuzhou and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and JCHX Mining
The main advantage of trading using opposite Guangxi Wuzhou and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou 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.| Guangxi Wuzhou vs. China Petroleum Chemical | Guangxi Wuzhou vs. PetroChina Co Ltd | Guangxi Wuzhou vs. China State Construction | Guangxi Wuzhou vs. China Railway Group |
| JCHX Mining vs. Shenzhen Bioeasy Biotechnology | JCHX Mining vs. Fuda Alloy Materials | JCHX Mining vs. Fujian Wanchen Biotechnology | JCHX Mining vs. Guangdong Marubi Biotechnology |
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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