Correlation Between JCHX Mining and Offshore Oil
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By analyzing existing cross correlation between JCHX Mining Management and Offshore Oil Engineering, you can compare the effects of market volatilities on JCHX Mining and Offshore Oil 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 Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Offshore Oil.
Diversification Opportunities for JCHX Mining and Offshore Oil
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JCHX and Offshore is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Offshore Oil Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Offshore Oil Engineering 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 Offshore Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Offshore Oil Engineering has no effect on the direction of JCHX Mining i.e., JCHX Mining and Offshore Oil go up and down completely randomly.
Pair Corralation between JCHX Mining and Offshore Oil
Assuming the 90 days trading horizon JCHX Mining Management is expected to under-perform the Offshore Oil. In addition to that, JCHX Mining is 1.52 times more volatile than Offshore Oil Engineering. It trades about -0.06 of its total potential returns per unit of risk. Offshore Oil Engineering is currently generating about -0.06 per unit of volatility. If you would invest 647.00 in Offshore Oil Engineering on September 3, 2024 and sell it today you would lose (114.00) from holding Offshore Oil Engineering or give up 17.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Offshore Oil Engineering
Performance |
| Timeline |
| JCHX Mining Management |
| Offshore Oil Engineering |
JCHX Mining and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Offshore Oil
The main advantage of trading using opposite JCHX Mining and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Offshore Oil 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 Offshore Oil will offset losses from the drop in Offshore Oil's long position.| JCHX Mining vs. Offshore Oil Engineering | JCHX Mining vs. Innovative Medical Management | JCHX Mining vs. Harvest Fund Management | JCHX Mining vs. Wuhan Hvsen Biotechnology |
| Offshore Oil vs. Jiangxi Hengda Hi Tech | Offshore Oil vs. Guangdong Shenglu Telecommunication | Offshore Oil vs. Shanghai Metersbonwe FashionAccessories | Offshore Oil vs. FSPG Hi Tech Co |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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