Correlation Between JCHX Mining and Chengtun Mining
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By analyzing existing cross correlation between JCHX Mining Management and Chengtun Mining Group, you can compare the effects of market volatilities on JCHX Mining and Chengtun Mining 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 Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Chengtun Mining.
Diversification Opportunities for JCHX Mining and Chengtun Mining
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JCHX and Chengtun is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Chengtun Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengtun Mining Group 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 Chengtun Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengtun Mining Group has no effect on the direction of JCHX Mining i.e., JCHX Mining and Chengtun Mining go up and down completely randomly.
Pair Corralation between JCHX Mining and Chengtun Mining
Assuming the 90 days trading horizon JCHX Mining Management is expected to generate 0.9 times more return on investment than Chengtun Mining. However, JCHX Mining Management is 1.11 times less risky than Chengtun Mining. It trades about 0.03 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about 0.0 per unit of risk. If you would invest 3,146 in JCHX Mining Management on December 1, 2024 and sell it today you would earn a total of 636.00 from holding JCHX Mining Management or generate 20.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Chengtun Mining Group
Performance |
| Timeline |
| JCHX Mining Management |
| Chengtun Mining Group |
JCHX Mining and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Chengtun Mining
The main advantage of trading using opposite JCHX Mining and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Chengtun Mining 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 Chengtun Mining will offset losses from the drop in Chengtun Mining's long position.| JCHX Mining vs. Shannon Semiconductor Technology | JCHX Mining vs. Sportsoul Co Ltd | JCHX Mining vs. SSAW Hotels Resorts | JCHX Mining vs. GigaDevice SemiconductorBeiji |
| Chengtun Mining vs. Zhangjiagang Elegant Home | Chengtun Mining vs. Nanxing Furniture Machinery | Chengtun Mining vs. Beijing Kingsoft Office | Chengtun Mining vs. Huatian Hotel 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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