Correlation Between JCHX Mining and Ningbo Kangqiang
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By analyzing existing cross correlation between JCHX Mining Management and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on JCHX Mining and Ningbo Kangqiang 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 Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Ningbo Kangqiang.
Diversification Opportunities for JCHX Mining and Ningbo Kangqiang
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JCHX and Ningbo is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Ningbo Kangqiang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Kangqiang Ele 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 Ningbo Kangqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Kangqiang Ele has no effect on the direction of JCHX Mining i.e., JCHX Mining and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between JCHX Mining and Ningbo Kangqiang
Assuming the 90 days trading horizon JCHX Mining Management is expected to under-perform the Ningbo Kangqiang. But the stock apears to be less risky and, when comparing its historical volatility, JCHX Mining Management is 2.37 times less risky than Ningbo Kangqiang. The stock trades about -0.19 of its potential returns per unit of risk. The Ningbo Kangqiang Electronics is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,514 in Ningbo Kangqiang Electronics on October 12, 2024 and sell it today you would earn a total of 203.00 from holding Ningbo Kangqiang Electronics or generate 13.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| JCHX Mining Management |
| Ningbo Kangqiang Ele |
JCHX Mining and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Ningbo Kangqiang
The main advantage of trading using opposite JCHX Mining and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Ningbo Kangqiang 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 Ningbo Kangqiang will offset losses from the drop in Ningbo Kangqiang'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 |
| Ningbo Kangqiang vs. Guocheng Mining Co | Ningbo Kangqiang vs. Shenzhen Silver Basis | Ningbo Kangqiang vs. Hainan Mining Co | Ningbo Kangqiang vs. JCHX Mining Management |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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