Correlation Between JCHX Mining and Hainan Mining
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By analyzing existing cross correlation between JCHX Mining Management and Hainan Mining Co, you can compare the effects of market volatilities on JCHX Mining and Hainan 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Hainan Mining.
Diversification Opportunities for JCHX Mining and Hainan Mining
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JCHX and Hainan is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of JCHX Mining i.e., JCHX Mining and Hainan Mining go up and down completely randomly.
Pair Corralation between JCHX Mining and Hainan Mining
Assuming the 90 days trading horizon JCHX Mining Management is expected to generate 0.95 times more return on investment than Hainan Mining. However, JCHX Mining Management is 1.05 times less risky than Hainan Mining. It trades about 0.15 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.03 per unit of risk. If you would invest 3,838 in JCHX Mining Management on November 5, 2024 and sell it today you would earn a total of 153.00 from holding JCHX Mining Management or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Hainan Mining Co
Performance |
| Timeline |
| JCHX Mining Management |
| Hainan Mining |
JCHX Mining and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Hainan Mining
The main advantage of trading using opposite JCHX Mining and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Hainan 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| JCHX Mining vs. Xinjiang Communications Construction | JCHX Mining vs. TianJin 712 Communication | JCHX Mining vs. CICT Mobile Communication | JCHX Mining vs. Xizi Clean Energy |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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