Correlation Between JCHX Mining and New China
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By analyzing existing cross correlation between JCHX Mining Management and New China Life, you can compare the effects of market volatilities on JCHX Mining and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and New China.
Diversification Opportunities for JCHX Mining and New China
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JCHX and New is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of JCHX Mining i.e., JCHX Mining and New China go up and down completely randomly.
Pair Corralation between JCHX Mining and New China
Assuming the 90 days trading horizon JCHX Mining Management is expected to under-perform the New China. But the stock apears to be less risky and, when comparing its historical volatility, JCHX Mining Management is 1.48 times less risky than New China. The stock trades about -0.11 of its potential returns per unit of risk. The New China Life is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,776 in New China Life on September 2, 2024 and sell it today you would lose (40.00) from holding New China Life or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. New China Life
Performance |
| Timeline |
| JCHX Mining Management |
| New China Life |
JCHX Mining and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and New China
The main advantage of trading using opposite JCHX Mining and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's 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 |
| New China vs. Xinjiang Communications Construction | New China vs. JCHX Mining Management | New China vs. Chengtun Mining Group | New China vs. Pengxin International 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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