Correlation Between Bank of Communications and JCHX Mining
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By analyzing existing cross correlation between Bank of Communications and JCHX Mining Management, you can compare the effects of market volatilities on Bank of Communications 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 Bank of Communications with a short position of JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and JCHX Mining.
Diversification Opportunities for Bank of Communications and JCHX Mining
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and JCHX is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bank of 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 Bank of Communications 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 Bank of 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 Bank of Communications i.e., Bank of Communications and JCHX Mining go up and down completely randomly.
Pair Corralation between Bank of Communications and JCHX Mining
Assuming the 90 days trading horizon Bank of Communications is expected to generate 6.32 times less return on investment than JCHX Mining. But when comparing it to its historical volatility, Bank of Communications is 1.57 times less risky than JCHX Mining. It trades about 0.0 of its potential returns per unit of risk. JCHX Mining Management is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,090 in JCHX Mining Management on October 26, 2024 and sell it today you would lose (64.00) from holding JCHX Mining Management or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. JCHX Mining Management
Performance |
| Timeline |
| Bank of Communications |
| JCHX Mining Management |
Bank of Communications and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and JCHX Mining
The main advantage of trading using opposite Bank of Communications and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications 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.| Bank of Communications vs. Beijing Seeyon Internet | Bank of Communications vs. Tianjin Hi Tech Development | Bank of Communications vs. Shandong Rike Chemical | Bank of Communications vs. Xilong Chemical 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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