Correlation Between JCHX Mining and Zijin Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between JCHX Mining Management and Zijin Mining Group, you can compare the effects of market volatilities on JCHX Mining and Zijin 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 Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Zijin Mining.
Diversification Opportunities for JCHX Mining and Zijin Mining
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JCHX and Zijin is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin 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 Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of JCHX Mining i.e., JCHX Mining and Zijin Mining go up and down completely randomly.
Pair Corralation between JCHX Mining and Zijin Mining
Assuming the 90 days trading horizon JCHX Mining Management is expected to generate 1.14 times more return on investment than Zijin Mining. However, JCHX Mining is 1.14 times more volatile than Zijin Mining Group. It trades about 0.06 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.05 per unit of risk. If you would invest 2,483 in JCHX Mining Management on August 28, 2024 and sell it today you would earn a total of 1,526 from holding JCHX Mining Management or generate 61.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Zijin Mining Group
Performance |
| Timeline |
| JCHX Mining Management |
| Zijin Mining Group |
JCHX Mining and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Zijin Mining
The main advantage of trading using opposite JCHX Mining and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Zijin 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 Zijin Mining will offset losses from the drop in Zijin Mining'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 |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Inner Mongolia BaoTou |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |