Correlation Between JCHX Mining and Ningbo Ligong
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By analyzing existing cross correlation between JCHX Mining Management and Ningbo Ligong Online, you can compare the effects of market volatilities on JCHX Mining and Ningbo Ligong 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 Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Ningbo Ligong.
Diversification Opportunities for JCHX Mining and Ningbo Ligong
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JCHX and Ningbo is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online 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 Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of JCHX Mining i.e., JCHX Mining and Ningbo Ligong go up and down completely randomly.
Pair Corralation between JCHX Mining and Ningbo Ligong
Assuming the 90 days trading horizon JCHX Mining Management is expected to generate 1.47 times more return on investment than Ningbo Ligong. However, JCHX Mining is 1.47 times more volatile than Ningbo Ligong Online. It trades about -0.1 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.44 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 (200.00) from holding JCHX Mining Management or give up 4.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Ningbo Ligong Online
Performance |
| Timeline |
| JCHX Mining Management |
| Ningbo Ligong Online |
JCHX Mining and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Ningbo Ligong
The main advantage of trading using opposite JCHX Mining and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Ningbo Ligong 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 Ligong will offset losses from the drop in Ningbo Ligong'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 Ligong vs. Advanced Technology Materials | Ningbo Ligong vs. Jilin OLED Material | Ningbo Ligong vs. Tongyu Communication | Ningbo Ligong vs. Jiangxi Hengda Hi Tech |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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