Correlation Between JCHX Mining and Hainan Airlines
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By analyzing existing cross correlation between JCHX Mining Management and Hainan Airlines Co, you can compare the effects of market volatilities on JCHX Mining and Hainan Airlines 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 Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Hainan Airlines.
Diversification Opportunities for JCHX Mining and Hainan Airlines
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JCHX and Hainan is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines 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 Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Airlines has no effect on the direction of JCHX Mining i.e., JCHX Mining and Hainan Airlines go up and down completely randomly.
Pair Corralation between JCHX Mining and Hainan Airlines
Assuming the 90 days trading horizon JCHX Mining Management is expected to generate 0.69 times more return on investment than Hainan Airlines. However, JCHX Mining Management is 1.46 times less risky than Hainan Airlines. It trades about 0.22 of its potential returns per unit of risk. Hainan Airlines Co is currently generating about -0.09 per unit of risk. If you would invest 3,695 in JCHX Mining Management on October 29, 2024 and sell it today you would earn a total of 329.00 from holding JCHX Mining Management or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Hainan Airlines Co
Performance |
| Timeline |
| JCHX Mining Management |
| Hainan Airlines |
JCHX Mining and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Hainan Airlines
The main advantage of trading using opposite JCHX Mining and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Hainan Airlines 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 Airlines will offset losses from the drop in Hainan Airlines' 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 |
| Hainan Airlines vs. Healthcare Co | Hainan Airlines vs. Masterwork Machinery | Hainan Airlines vs. Lotus Health Group | Hainan Airlines vs. Allied Machinery Co |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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