Correlation Between JCHX Mining and Fuzhou Rockchip
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By analyzing existing cross correlation between JCHX Mining Management and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on JCHX Mining and Fuzhou Rockchip 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 Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Fuzhou Rockchip.
Diversification Opportunities for JCHX Mining and Fuzhou Rockchip
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JCHX and Fuzhou is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Fuzhou Rockchip Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuzhou Rockchip Elec 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 Fuzhou Rockchip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuzhou Rockchip Elec has no effect on the direction of JCHX Mining i.e., JCHX Mining and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between JCHX Mining and Fuzhou Rockchip
Assuming the 90 days trading horizon JCHX Mining Management is expected to generate 0.8 times more return on investment than Fuzhou Rockchip. However, JCHX Mining Management is 1.25 times less risky than Fuzhou Rockchip. It trades about 0.06 of its potential returns per unit of risk. Fuzhou Rockchip Electronics is currently generating about 0.03 per unit of risk. If you would invest 2,534 in JCHX Mining Management on September 14, 2024 and sell it today you would earn a total of 1,669 from holding JCHX Mining Management or generate 65.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| JCHX Mining Management |
| Fuzhou Rockchip Elec |
JCHX Mining and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Fuzhou Rockchip
The main advantage of trading using opposite JCHX Mining and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Fuzhou Rockchip 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 Fuzhou Rockchip will offset losses from the drop in Fuzhou Rockchip'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 |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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