Correlation Between JCHX Mining and Chengdu Kanghua
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By analyzing existing cross correlation between JCHX Mining Management and Chengdu Kanghua Biological, you can compare the effects of market volatilities on JCHX Mining and Chengdu Kanghua 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 Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Chengdu Kanghua.
Diversification Opportunities for JCHX Mining and Chengdu Kanghua
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JCHX and Chengdu is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol 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 Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of JCHX Mining i.e., JCHX Mining and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between JCHX Mining and Chengdu Kanghua
Assuming the 90 days trading horizon JCHX Mining Management is expected to under-perform the Chengdu Kanghua. But the stock apears to be less risky and, when comparing its historical volatility, JCHX Mining Management is 1.12 times less risky than Chengdu Kanghua. The stock trades about -0.11 of its potential returns per unit of risk. The Chengdu Kanghua Biological is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 5,867 in Chengdu Kanghua Biological on September 2, 2024 and sell it today you would lose (104.00) from holding Chengdu Kanghua Biological or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| JCHX Mining Management |
| Chengdu Kanghua Biol |
JCHX Mining and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Chengdu Kanghua
The main advantage of trading using opposite JCHX Mining and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua'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 |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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