Correlation Between JCHX Mining and Zhejiang Kingland
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By analyzing existing cross correlation between JCHX Mining Management and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on JCHX Mining and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Zhejiang Kingland.
Diversification Opportunities for JCHX Mining and Zhejiang Kingland
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JCHX and Zhejiang is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of JCHX Mining i.e., JCHX Mining and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between JCHX Mining and Zhejiang Kingland
Assuming the 90 days trading horizon JCHX Mining Management is expected to generate 1.14 times more return on investment than Zhejiang Kingland. However, JCHX Mining is 1.14 times more volatile than Zhejiang Kingland Pipeline. It trades about 0.02 of its potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about -0.01 per unit of risk. If you would invest 3,551 in JCHX Mining Management on September 21, 2024 and sell it today you would earn a total of 279.00 from holding JCHX Mining Management or generate 7.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| JCHX Mining Management |
| Zhejiang Kingland |
JCHX Mining and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Zhejiang Kingland
The main advantage of trading using opposite JCHX Mining and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland'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 |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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