Correlation Between JCHX Mining and Chongqing Changan
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By analyzing existing cross correlation between JCHX Mining Management and Chongqing Changan Automobile, you can compare the effects of market volatilities on JCHX Mining and Chongqing Changan 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 JCHX Mining with a short position of Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Chongqing Changan.
Diversification Opportunities for JCHX Mining and Chongqing Changan
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between JCHX and Chongqing is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan and JCHX Mining 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 JCHX Mining Management are associated (or correlated) with Chongqing Changan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Changan has no effect on the direction of JCHX Mining i.e., JCHX Mining and Chongqing Changan go up and down completely randomly.
Pair Corralation between JCHX Mining and Chongqing Changan
Assuming the 90 days trading horizon JCHX Mining Management is expected to generate 1.41 times more return on investment than Chongqing Changan. However, JCHX Mining is 1.41 times more volatile than Chongqing Changan Automobile. It trades about -0.09 of its potential returns per unit of risk. Chongqing Changan Automobile is currently generating about -0.31 per unit of risk. If you would invest 4,107 in JCHX Mining Management on October 11, 2024 and sell it today you would lose (192.00) from holding JCHX Mining Management or give up 4.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Chongqing Changan Automobile
Performance |
| Timeline |
| JCHX Mining Management |
| Chongqing Changan |
JCHX Mining and Chongqing Changan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Chongqing Changan
The main advantage of trading using opposite JCHX Mining and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Chongqing Changan 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 Chongqing Changan will offset losses from the drop in Chongqing Changan's long position.| JCHX Mining vs. Hangzhou Pinming Software | JCHX Mining vs. China Publishing Media | JCHX Mining vs. Beijing Baolande Software | JCHX Mining vs. Guangzhou Jinyi Media |
| Chongqing Changan vs. Elite Color Environmental | Chongqing Changan vs. Marssenger Kitchenware Co | Chongqing Changan vs. Penyao Environmental Protection | Chongqing Changan vs. Anhui Deli Household |
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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