Correlation Between JCHX Mining and Allied Machinery
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By analyzing existing cross correlation between JCHX Mining Management and Allied Machinery Co, you can compare the effects of market volatilities on JCHX Mining and Allied 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 Allied Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Allied Machinery.
Diversification Opportunities for JCHX Mining and Allied Machinery
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JCHX and Allied is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Allied Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied 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 Allied Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Machinery has no effect on the direction of JCHX Mining i.e., JCHX Mining and Allied Machinery go up and down completely randomly.
Pair Corralation between JCHX Mining and Allied Machinery
Assuming the 90 days trading horizon JCHX Mining Management is expected to generate 0.88 times more return on investment than Allied Machinery. However, JCHX Mining Management is 1.13 times less risky than Allied Machinery. It trades about 0.04 of its potential returns per unit of risk. Allied Machinery Co is currently generating about -0.02 per unit of risk. If you would invest 2,904 in JCHX Mining Management on October 16, 2024 and sell it today you would earn a total of 1,195 from holding JCHX Mining Management or generate 41.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Allied Machinery Co
Performance |
| Timeline |
| JCHX Mining Management |
| Allied Machinery |
JCHX Mining and Allied Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Allied Machinery
The main advantage of trading using opposite JCHX Mining and Allied Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Allied 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 Allied Machinery will offset losses from the drop in Allied Machinery's long position.| JCHX Mining vs. Wuhan Yangtze Communication | JCHX Mining vs. Zoy Home Furnishing | JCHX Mining vs. Qumei Furniture Group | JCHX Mining vs. Easyhome New Retail |
| Allied Machinery vs. Winner Medical Co | Allied Machinery vs. JCHX Mining Management | Allied Machinery vs. Shenyang Blue Silver | Allied Machinery vs. Zhongzhu Medical Holdings |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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