Correlation Between JCHX Mining and Rising Nonferrous
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By analyzing existing cross correlation between JCHX Mining Management and Rising Nonferrous Metals, you can compare the effects of market volatilities on JCHX Mining and Rising Nonferrous 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 Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Rising Nonferrous.
Diversification Opportunities for JCHX Mining and Rising Nonferrous
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JCHX and Rising is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Rising Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rising Nonferrous Metals 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 Rising Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rising Nonferrous Metals has no effect on the direction of JCHX Mining i.e., JCHX Mining and Rising Nonferrous go up and down completely randomly.
Pair Corralation between JCHX Mining and Rising Nonferrous
Assuming the 90 days trading horizon JCHX Mining Management is expected to generate 1.06 times more return on investment than Rising Nonferrous. However, JCHX Mining is 1.06 times more volatile than Rising Nonferrous Metals. It trades about 0.04 of its potential returns per unit of risk. Rising Nonferrous Metals is currently generating about -0.02 per unit of risk. If you would invest 2,769 in JCHX Mining Management on August 29, 2024 and sell it today you would earn a total of 1,126 from holding JCHX Mining Management or generate 40.66% 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. Rising Nonferrous Metals
Performance |
| Timeline |
| JCHX Mining Management |
| Rising Nonferrous Metals |
JCHX Mining and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Rising Nonferrous
The main advantage of trading using opposite JCHX Mining and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Rising Nonferrous 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 Rising Nonferrous will offset losses from the drop in Rising Nonferrous' 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 |
| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Wanhua Chemical Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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