Correlation Between JCHX Mining and Hongrun Construction
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By analyzing existing cross correlation between JCHX Mining Management and Hongrun Construction Group, you can compare the effects of market volatilities on JCHX Mining and Hongrun Construction 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 Hongrun Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Hongrun Construction.
Diversification Opportunities for JCHX Mining and Hongrun Construction
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JCHX and Hongrun is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Hongrun Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hongrun Construction 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 Hongrun Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hongrun Construction has no effect on the direction of JCHX Mining i.e., JCHX Mining and Hongrun Construction go up and down completely randomly.
Pair Corralation between JCHX Mining and Hongrun Construction
Assuming the 90 days trading horizon JCHX Mining Management is expected to generate 0.96 times more return on investment than Hongrun Construction. However, JCHX Mining Management is 1.04 times less risky than Hongrun Construction. It trades about 0.2 of its potential returns per unit of risk. Hongrun Construction Group is currently generating about -0.03 per unit of risk. If you would invest 3,695 in JCHX Mining Management on October 30, 2024 and sell it today you would earn a total of 296.00 from holding JCHX Mining Management or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Hongrun Construction Group
Performance |
| Timeline |
| JCHX Mining Management |
| Hongrun Construction |
JCHX Mining and Hongrun Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Hongrun Construction
The main advantage of trading using opposite JCHX Mining and Hongrun Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Hongrun Construction 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 Hongrun Construction will offset losses from the drop in Hongrun Construction'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 |
| Hongrun Construction vs. Industrial and Commercial | Hongrun Construction vs. China Construction Bank | Hongrun Construction vs. Agricultural Bank of | Hongrun Construction vs. Bank of China |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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