Correlation Between JCHX Mining and Xiandai Investment
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By analyzing existing cross correlation between JCHX Mining Management and Xiandai Investment Co, you can compare the effects of market volatilities on JCHX Mining and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Xiandai Investment.
Diversification Opportunities for JCHX Mining and Xiandai Investment
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JCHX and Xiandai is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of JCHX Mining i.e., JCHX Mining and Xiandai Investment go up and down completely randomly.
Pair Corralation between JCHX Mining and Xiandai Investment
Assuming the 90 days trading horizon JCHX Mining Management is expected to generate 1.27 times more return on investment than Xiandai Investment. However, JCHX Mining is 1.27 times more volatile than Xiandai Investment Co. It trades about -0.09 of its potential returns per unit of risk. Xiandai Investment Co is currently generating about -0.26 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Xiandai Investment Co
Performance |
| Timeline |
| JCHX Mining Management |
| Xiandai Investment |
JCHX Mining and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Xiandai Investment
The main advantage of trading using opposite JCHX Mining and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| JCHX Mining vs. Aba Chemicals Corp | JCHX Mining vs. Henan Shuanghui Investment | JCHX Mining vs. BTG Hotels Group | JCHX Mining vs. Ningxia Younglight Chemicals |
| Xiandai Investment vs. JCHX Mining Management | Xiandai Investment vs. Maccura Biotechnology Co | Xiandai Investment vs. Guocheng Mining Co | Xiandai Investment vs. Uroica Mining Safety |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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