Correlation Between JCHX Mining and Guangdong Tengen
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By analyzing existing cross correlation between JCHX Mining Management and Guangdong Tengen Industrial, you can compare the effects of market volatilities on JCHX Mining and Guangdong Tengen 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 Guangdong Tengen. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Guangdong Tengen.
Diversification Opportunities for JCHX Mining and Guangdong Tengen
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between JCHX and Guangdong is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Guangdong Tengen Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tengen Ind 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 Guangdong Tengen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tengen Ind has no effect on the direction of JCHX Mining i.e., JCHX Mining and Guangdong Tengen go up and down completely randomly.
Pair Corralation between JCHX Mining and Guangdong Tengen
Assuming the 90 days trading horizon JCHX Mining is expected to generate 6.79 times less return on investment than Guangdong Tengen. But when comparing it to its historical volatility, JCHX Mining Management is 1.09 times less risky than Guangdong Tengen. It trades about 0.01 of its potential returns per unit of risk. Guangdong Tengen Industrial is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 760.00 in Guangdong Tengen Industrial on November 3, 2024 and sell it today you would earn a total of 215.00 from holding Guangdong Tengen Industrial or generate 28.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Guangdong Tengen Industrial
Performance |
| Timeline |
| JCHX Mining Management |
| Guangdong Tengen Ind |
JCHX Mining and Guangdong Tengen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Guangdong Tengen
The main advantage of trading using opposite JCHX Mining and Guangdong Tengen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Guangdong Tengen 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 Guangdong Tengen will offset losses from the drop in Guangdong Tengen's long position.| JCHX Mining vs. Heilongjiang Transport Development | JCHX Mining vs. Shanghai Yanpu Metal | JCHX Mining vs. Sino Platinum Metals Co | JCHX Mining vs. CITIC Metal Co |
| Guangdong Tengen vs. Guangzhou Seagull Kitchen | Guangdong Tengen vs. JCHX Mining Management | Guangdong Tengen vs. Chengtun Mining Group | Guangdong Tengen vs. GRINM Semiconductor Materials |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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