Correlation Between OBiO Technology and JCHX Mining
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By analyzing existing cross correlation between OBiO Technology Corp and JCHX Mining Management, you can compare the effects of market volatilities on OBiO Technology 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 OBiO Technology with a short position of JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of OBiO Technology and JCHX Mining.
Diversification Opportunities for OBiO Technology and JCHX Mining
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OBiO and JCHX is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding OBiO Technology Corp 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 OBiO Technology 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 OBiO Technology Corp 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 OBiO Technology i.e., OBiO Technology and JCHX Mining go up and down completely randomly.
Pair Corralation between OBiO Technology and JCHX Mining
Assuming the 90 days trading horizon OBiO Technology Corp is expected to generate 1.21 times more return on investment than JCHX Mining. However, OBiO Technology is 1.21 times more volatile than JCHX Mining Management. It trades about 0.11 of its potential returns per unit of risk. JCHX Mining Management is currently generating about -0.08 per unit of risk. If you would invest 535.00 in OBiO Technology Corp on August 30, 2024 and sell it today you would earn a total of 38.00 from holding OBiO Technology Corp or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OBiO Technology Corp vs. JCHX Mining Management
Performance |
| Timeline |
| OBiO Technology Corp |
| JCHX Mining Management |
OBiO Technology and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OBiO Technology and JCHX Mining
The main advantage of trading using opposite OBiO Technology and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OBiO Technology 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.| OBiO Technology vs. Guangzhou Tinci Materials | OBiO Technology vs. Ningxia Building Materials | OBiO Technology vs. Jinling Hotel Corp | OBiO Technology vs. Fuda Alloy Materials |
| JCHX Mining vs. Beijing Kaiwen Education | JCHX Mining vs. Ningxia Younglight Chemicals | JCHX Mining vs. Eastroc Beverage Group | JCHX Mining vs. Qtone Education Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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