Correlation Between JCHX Mining and Huaxia Fund
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By analyzing existing cross correlation between JCHX Mining Management and Huaxia Fund Management, you can compare the effects of market volatilities on JCHX Mining and Huaxia Fund 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 Huaxia Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Huaxia Fund.
Diversification Opportunities for JCHX Mining and Huaxia Fund
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between JCHX and Huaxia is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Huaxia Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Fund Management 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 Huaxia Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Fund Management has no effect on the direction of JCHX Mining i.e., JCHX Mining and Huaxia Fund go up and down completely randomly.
Pair Corralation between JCHX Mining and Huaxia Fund
Assuming the 90 days trading horizon JCHX Mining Management is expected to generate 2.39 times more return on investment than Huaxia Fund. However, JCHX Mining is 2.39 times more volatile than Huaxia Fund Management. It trades about 0.03 of its potential returns per unit of risk. Huaxia Fund Management is currently generating about 0.04 per unit of risk. If you would invest 3,615 in JCHX Mining Management on August 25, 2024 and sell it today you would earn a total of 375.00 from holding JCHX Mining Management or generate 10.37% 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. Huaxia Fund Management
Performance |
| Timeline |
| JCHX Mining Management |
| Huaxia Fund Management |
JCHX Mining and Huaxia Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Huaxia Fund
The main advantage of trading using opposite JCHX Mining and Huaxia Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Huaxia Fund 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 Huaxia Fund will offset losses from the drop in Huaxia Fund'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 |
| Huaxia Fund vs. Industrial and Commercial | Huaxia Fund vs. Kweichow Moutai Co | Huaxia Fund vs. Agricultural Bank of | Huaxia Fund vs. China Mobile Limited |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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