Correlation Between JCHX Mining and Guocheng Mining
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By analyzing existing cross correlation between JCHX Mining Management and Guocheng Mining Co, you can compare the effects of market volatilities on JCHX Mining and Guocheng 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 JCHX Mining with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Guocheng Mining.
Diversification Opportunities for JCHX Mining and Guocheng Mining
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JCHX and Guocheng is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining 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 Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of JCHX Mining i.e., JCHX Mining and Guocheng Mining go up and down completely randomly.
Pair Corralation between JCHX Mining and Guocheng Mining
Assuming the 90 days trading horizon JCHX Mining Management is expected to under-perform the Guocheng Mining. But the stock apears to be less risky and, when comparing its historical volatility, JCHX Mining Management is 1.08 times less risky than Guocheng Mining. The stock trades about -0.08 of its potential returns per unit of risk. The Guocheng Mining Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,244 in Guocheng Mining Co on September 1, 2024 and sell it today you would earn a total of 167.00 from holding Guocheng Mining Co or generate 13.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Guocheng Mining Co
Performance |
| Timeline |
| JCHX Mining Management |
| Guocheng Mining |
JCHX Mining and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Guocheng Mining
The main advantage of trading using opposite JCHX Mining and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Guocheng 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 Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.| JCHX Mining vs. Zijin Mining Group | JCHX Mining vs. Wanhua Chemical Group | JCHX Mining vs. Baoshan Iron Steel | JCHX Mining vs. Shandong Gold Mining |
| Guocheng Mining vs. Kweichow Moutai Co | Guocheng Mining vs. Contemporary Amperex Technology | Guocheng Mining vs. G bits Network Technology | Guocheng Mining vs. BYD Co Ltd |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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