Correlation Between JCHX Mining and Zhongshan Broad
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By analyzing existing cross correlation between JCHX Mining Management and Zhongshan Broad Ocean Motor, you can compare the effects of market volatilities on JCHX Mining and Zhongshan Broad 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 Zhongshan Broad. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Zhongshan Broad.
Diversification Opportunities for JCHX Mining and Zhongshan Broad
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between JCHX and Zhongshan is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Zhongshan Broad Ocean Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Broad Ocean 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 Zhongshan Broad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Broad Ocean has no effect on the direction of JCHX Mining i.e., JCHX Mining and Zhongshan Broad go up and down completely randomly.
Pair Corralation between JCHX Mining and Zhongshan Broad
Assuming the 90 days trading horizon JCHX Mining Management is expected to generate 0.66 times more return on investment than Zhongshan Broad. However, JCHX Mining Management is 1.51 times less risky than Zhongshan Broad. It trades about 0.2 of its potential returns per unit of risk. Zhongshan Broad Ocean Motor is currently generating about -0.04 per unit of risk. If you would invest 3,720 in JCHX Mining Management on October 28, 2024 and sell it today you would earn a total of 304.00 from holding JCHX Mining Management or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Zhongshan Broad Ocean Motor
Performance |
| Timeline |
| JCHX Mining Management |
| Zhongshan Broad Ocean |
JCHX Mining and Zhongshan Broad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Zhongshan Broad
The main advantage of trading using opposite JCHX Mining and Zhongshan Broad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Zhongshan Broad 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 Zhongshan Broad will offset losses from the drop in Zhongshan Broad'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 |
| Zhongshan Broad vs. Lier Chemical Co | Zhongshan Broad vs. Shandong Polymer Biochemicals | Zhongshan Broad vs. Maoming Petro Chemical Shihua | Zhongshan Broad vs. Lianhe Chemical Technology |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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