Correlation Between JCHX Mining and Guangxi Wuzhou
Specify exactly 2 symbols:
By analyzing existing cross correlation between JCHX Mining Management and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on JCHX Mining and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Guangxi Wuzhou.
Diversification Opportunities for JCHX Mining and Guangxi Wuzhou
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JCHX and Guangxi is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of JCHX Mining i.e., JCHX Mining and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between JCHX Mining and Guangxi Wuzhou
Assuming the 90 days trading horizon JCHX Mining Management is expected to generate 0.39 times more return on investment than Guangxi Wuzhou. However, JCHX Mining Management is 2.57 times less risky than Guangxi Wuzhou. It trades about 0.04 of its potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about -0.01 per unit of risk. If you would invest 3,967 in JCHX Mining Management on October 17, 2024 and sell it today you would earn a total of 51.00 from holding JCHX Mining Management or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| JCHX Mining Management |
| Guangxi Wuzhou Commu |
JCHX Mining and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Guangxi Wuzhou
The main advantage of trading using opposite JCHX Mining and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| JCHX Mining vs. Shenzhen Bioeasy Biotechnology | JCHX Mining vs. Fuda Alloy Materials | JCHX Mining vs. Fujian Wanchen Biotechnology | JCHX Mining vs. Guangdong Marubi Biotechnology |
| Guangxi Wuzhou vs. China Petroleum Chemical | Guangxi Wuzhou vs. PetroChina Co Ltd | Guangxi Wuzhou vs. China State Construction | Guangxi Wuzhou vs. China Railway 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |