Correlation Between JCHX Mining and Shandong Ruifeng
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By analyzing existing cross correlation between JCHX Mining Management and Shandong Ruifeng Chemical, you can compare the effects of market volatilities on JCHX Mining and Shandong Ruifeng 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 Shandong Ruifeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Shandong Ruifeng.
Diversification Opportunities for JCHX Mining and Shandong Ruifeng
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JCHX and Shandong is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Shandong Ruifeng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Ruifeng Chemical 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 Shandong Ruifeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Ruifeng Chemical has no effect on the direction of JCHX Mining i.e., JCHX Mining and Shandong Ruifeng go up and down completely randomly.
Pair Corralation between JCHX Mining and Shandong Ruifeng
Assuming the 90 days trading horizon JCHX Mining is expected to generate 2.77 times less return on investment than Shandong Ruifeng. But when comparing it to its historical volatility, JCHX Mining Management is 1.67 times less risky than Shandong Ruifeng. It trades about 0.03 of its potential returns per unit of risk. Shandong Ruifeng Chemical is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 954.00 in Shandong Ruifeng Chemical on August 25, 2024 and sell it today you would earn a total of 304.00 from holding Shandong Ruifeng Chemical or generate 31.87% 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. Shandong Ruifeng Chemical
Performance |
| Timeline |
| JCHX Mining Management |
| Shandong Ruifeng Chemical |
JCHX Mining and Shandong Ruifeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Shandong Ruifeng
The main advantage of trading using opposite JCHX Mining and Shandong Ruifeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Shandong Ruifeng 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 Shandong Ruifeng will offset losses from the drop in Shandong Ruifeng's long position.| JCHX Mining vs. Chinese Universe Publishing | JCHX Mining vs. Kuangda Technology Group | JCHX Mining vs. Sinofibers Technology Co | JCHX Mining vs. Shandong Publishing Media |
| Shandong Ruifeng vs. Dalian Thermal Power | Shandong Ruifeng vs. Shandong Mining Machinery | Shandong Ruifeng vs. Changjiang Publishing Media | Shandong Ruifeng vs. Guangzhou Restaurants Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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