Correlation Between JCHX Mining and Qijing Machinery
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By analyzing existing cross correlation between JCHX Mining Management and Qijing Machinery, you can compare the effects of market volatilities on JCHX Mining and Qijing Machinery 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 Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Qijing Machinery.
Diversification Opportunities for JCHX Mining and Qijing Machinery
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JCHX and Qijing is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery 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 Qijing Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qijing Machinery has no effect on the direction of JCHX Mining i.e., JCHX Mining and Qijing Machinery go up and down completely randomly.
Pair Corralation between JCHX Mining and Qijing Machinery
Assuming the 90 days trading horizon JCHX Mining Management is expected to under-perform the Qijing Machinery. But the stock apears to be less risky and, when comparing its historical volatility, JCHX Mining Management is 1.83 times less risky than Qijing Machinery. The stock trades about -0.11 of its potential returns per unit of risk. The Qijing Machinery is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,300 in Qijing Machinery on September 28, 2024 and sell it today you would lose (43.00) from holding Qijing Machinery or give up 3.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Qijing Machinery
Performance |
| Timeline |
| JCHX Mining Management |
| Qijing Machinery |
JCHX Mining and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Qijing Machinery
The main advantage of trading using opposite JCHX Mining and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Qijing Machinery 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 Qijing Machinery will offset losses from the drop in Qijing Machinery's long position.| JCHX Mining vs. Yunnan Copper Co | JCHX Mining vs. Huaxia Fund Management | JCHX Mining vs. China Asset Management | JCHX Mining vs. Hainan Airlines Co |
| Qijing Machinery vs. Industrial and Commercial | Qijing Machinery vs. China Construction Bank | Qijing Machinery vs. Agricultural Bank of | Qijing Machinery vs. Bank of China |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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