Correlation Between JCHX Mining and Lianhe Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between JCHX Mining Management and Lianhe Chemical Technology, you can compare the effects of market volatilities on JCHX Mining and Lianhe Chemical 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 Lianhe Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Lianhe Chemical.
Diversification Opportunities for JCHX Mining and Lianhe Chemical
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JCHX and Lianhe is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Lianhe Chemical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lianhe Chemical Tech 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 Lianhe Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lianhe Chemical Tech has no effect on the direction of JCHX Mining i.e., JCHX Mining and Lianhe Chemical go up and down completely randomly.
Pair Corralation between JCHX Mining and Lianhe Chemical
Assuming the 90 days trading horizon JCHX Mining Management is expected to under-perform the Lianhe Chemical. In addition to that, JCHX Mining is 1.15 times more volatile than Lianhe Chemical Technology. It trades about -0.07 of its total potential returns per unit of risk. Lianhe Chemical Technology is currently generating about 0.0 per unit of volatility. If you would invest 600.00 in Lianhe Chemical Technology on August 29, 2024 and sell it today you would lose (4.00) from holding Lianhe Chemical Technology or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Lianhe Chemical Technology
Performance |
| Timeline |
| JCHX Mining Management |
| Lianhe Chemical Tech |
JCHX Mining and Lianhe Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Lianhe Chemical
The main advantage of trading using opposite JCHX Mining and Lianhe Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Lianhe Chemical 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 Lianhe Chemical will offset losses from the drop in Lianhe Chemical'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 |
| Lianhe Chemical vs. Sportsoul Co Ltd | Lianhe Chemical vs. Dawning Information Industry | Lianhe Chemical vs. AVCON Information Tech | Lianhe Chemical vs. Focus Media Information |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |