Correlation Between Xinjiang Tianrun and JCHX Mining
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and JCHX Mining Management, you can compare the effects of market volatilities on Xinjiang Tianrun 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 Xinjiang Tianrun with a short position of JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and JCHX Mining.
Diversification Opportunities for Xinjiang Tianrun and JCHX Mining
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xinjiang and JCHX is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy 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 Xinjiang Tianrun 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 Xinjiang Tianrun Dairy 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 Xinjiang Tianrun i.e., Xinjiang Tianrun and JCHX Mining go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and JCHX Mining
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to under-perform the JCHX Mining. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Tianrun Dairy is 1.24 times less risky than JCHX Mining. The stock trades about -0.04 of its potential returns per unit of risk. The JCHX Mining Management is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,528 in JCHX Mining Management on September 2, 2024 and sell it today you would earn a total of 380.00 from holding JCHX Mining Management or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. JCHX Mining Management
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| JCHX Mining Management |
Xinjiang Tianrun and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and JCHX Mining
The main advantage of trading using opposite Xinjiang Tianrun and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun 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.| Xinjiang Tianrun vs. Jiangxi JDL Environmental | Xinjiang Tianrun vs. Jiugui Liquor Co | Xinjiang Tianrun vs. Guangzhou Tinci Materials | Xinjiang Tianrun vs. Tongxing Environmental Protection |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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