Correlation Between China Publishing and JCHX Mining
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By analyzing existing cross correlation between China Publishing Media and JCHX Mining Management, you can compare the effects of market volatilities on China Publishing 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 China Publishing with a short position of JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and JCHX Mining.
Diversification Opportunities for China Publishing and JCHX Mining
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and JCHX is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media 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 China Publishing 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 China Publishing Media 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 China Publishing i.e., China Publishing and JCHX Mining go up and down completely randomly.
Pair Corralation between China Publishing and JCHX Mining
Assuming the 90 days trading horizon China Publishing Media is expected to under-perform the JCHX Mining. But the stock apears to be less risky and, when comparing its historical volatility, China Publishing Media is 1.11 times less risky than JCHX Mining. The stock trades about -0.55 of its potential returns per unit of risk. The JCHX Mining Management is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 4,107 in JCHX Mining Management on October 11, 2024 and sell it today you would lose (200.00) from holding JCHX Mining Management or give up 4.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. JCHX Mining Management
Performance |
| Timeline |
| China Publishing Media |
| JCHX Mining Management |
China Publishing and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and JCHX Mining
The main advantage of trading using opposite China Publishing and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing 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.| China Publishing vs. Shanghai Broadband Technology | China Publishing vs. Fujian Longzhou Transportation | China Publishing vs. Road Environment Technology | China Publishing vs. Zhengping RoadBridge Constr |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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