Correlation Between Guotai Epoint and JCHX Mining
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By analyzing existing cross correlation between Guotai Epoint Software and JCHX Mining Management, you can compare the effects of market volatilities on Guotai Epoint and JCHX Mining 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 Guotai Epoint with a short position of JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guotai Epoint and JCHX Mining.
Diversification Opportunities for Guotai Epoint and JCHX Mining
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guotai and JCHX is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Guotai Epoint Software and JCHX Mining Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCHX Mining Management and Guotai Epoint 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 Guotai Epoint Software are associated (or correlated) with JCHX Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCHX Mining Management has no effect on the direction of Guotai Epoint i.e., Guotai Epoint and JCHX Mining go up and down completely randomly.
Pair Corralation between Guotai Epoint and JCHX Mining
Assuming the 90 days trading horizon Guotai Epoint Software is expected to under-perform the JCHX Mining. In addition to that, Guotai Epoint is 1.05 times more volatile than JCHX Mining Management. It trades about -0.3 of its total potential returns per unit of risk. JCHX Mining Management is currently generating about 0.08 per unit of volatility. If you would invest 3,967 in JCHX Mining Management on October 16, 2024 and sell it today you would earn a total of 118.00 from holding JCHX Mining Management or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guotai Epoint Software vs. JCHX Mining Management
Performance |
| Timeline |
| Guotai Epoint Software |
| JCHX Mining Management |
Guotai Epoint and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guotai Epoint and JCHX Mining
The main advantage of trading using opposite Guotai Epoint and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guotai Epoint position performs unexpectedly, JCHX Mining 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 JCHX Mining will offset losses from the drop in JCHX Mining's long position.| Guotai Epoint vs. China Life Insurance | Guotai Epoint vs. Cinda Securities Co | Guotai Epoint vs. Piotech Inc A | Guotai Epoint vs. Dongxing Sec Co |
| JCHX Mining vs. Xinjiang Tianrun Dairy | JCHX Mining vs. Guotai Epoint Software | JCHX Mining vs. Jiangxi Sunshine Dairy | JCHX Mining vs. Yankershop Food 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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