Correlation Between JCHX Mining and Guangdong Liantai
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By analyzing existing cross correlation between JCHX Mining Management and Guangdong Liantai Environmental, you can compare the effects of market volatilities on JCHX Mining and Guangdong Liantai 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 Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Guangdong Liantai.
Diversification Opportunities for JCHX Mining and Guangdong Liantai
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JCHX and Guangdong is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai 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 Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of JCHX Mining i.e., JCHX Mining and Guangdong Liantai go up and down completely randomly.
Pair Corralation between JCHX Mining and Guangdong Liantai
Assuming the 90 days trading horizon JCHX Mining Management is expected to generate 1.14 times more return on investment than Guangdong Liantai. However, JCHX Mining is 1.14 times more volatile than Guangdong Liantai Environmental. It trades about 0.04 of its potential returns per unit of risk. Guangdong Liantai Environmental is currently generating about -0.03 per unit of risk. If you would invest 2,840 in JCHX Mining Management on October 29, 2024 and sell it today you would earn a total of 1,184 from holding JCHX Mining Management or generate 41.69% 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. Guangdong Liantai Environmenta
Performance |
| Timeline |
| JCHX Mining Management |
| Guangdong Liantai |
JCHX Mining and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Guangdong Liantai
The main advantage of trading using opposite JCHX Mining and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Guangdong Liantai 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 Guangdong Liantai will offset losses from the drop in Guangdong Liantai's long position.| JCHX Mining vs. Shuhua Sports Co | JCHX Mining vs. Beijing Jiaman Dress | JCHX Mining vs. Sichuan Fulin Transportation | JCHX Mining vs. Fujian Longzhou Transportation |
| Guangdong Liantai vs. Jiangxi Lianchuang Opto electronic | Guangdong Liantai vs. Shenzhen Topway Video | Guangdong Liantai vs. Leyard Optoelectronic | Guangdong Liantai vs. Cicc Fund 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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