Correlation Between JCHX Mining and Aluminum Corp
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By analyzing existing cross correlation between JCHX Mining Management and Aluminum Corp of, you can compare the effects of market volatilities on JCHX Mining and Aluminum Corp 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 Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Aluminum Corp.
Diversification Opportunities for JCHX Mining and Aluminum Corp
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JCHX and Aluminum is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp 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 Aluminum Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminum Corp has no effect on the direction of JCHX Mining i.e., JCHX Mining and Aluminum Corp go up and down completely randomly.
Pair Corralation between JCHX Mining and Aluminum Corp
Assuming the 90 days trading horizon JCHX Mining is expected to generate 1.49 times less return on investment than Aluminum Corp. In addition to that, JCHX Mining is 1.05 times more volatile than Aluminum Corp of. It trades about 0.04 of its total potential returns per unit of risk. Aluminum Corp of is currently generating about 0.06 per unit of volatility. If you would invest 576.00 in Aluminum Corp of on September 14, 2024 and sell it today you would earn a total of 209.00 from holding Aluminum Corp of or generate 36.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Aluminum Corp of
Performance |
| Timeline |
| JCHX Mining Management |
| Aluminum Corp |
JCHX Mining and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Aluminum Corp
The main advantage of trading using opposite JCHX Mining and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Aluminum Corp 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 Aluminum Corp will offset losses from the drop in Aluminum Corp'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 |
| Aluminum Corp vs. Shengda Mining Co | Aluminum Corp vs. Dareway Software Co | Aluminum Corp vs. Xizi Clean Energy | Aluminum Corp vs. JCHX Mining Management |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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