Correlation Between Changchun BCHT and JCHX Mining
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and JCHX Mining Management, you can compare the effects of market volatilities on Changchun BCHT 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 Changchun BCHT with a short position of JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and JCHX Mining.
Diversification Opportunities for Changchun BCHT and JCHX Mining
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changchun and JCHX is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology 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 Changchun BCHT 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 Changchun BCHT Biotechnology 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 Changchun BCHT i.e., Changchun BCHT and JCHX Mining go up and down completely randomly.
Pair Corralation between Changchun BCHT and JCHX Mining
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the JCHX Mining. In addition to that, Changchun BCHT is 1.01 times more volatile than JCHX Mining Management. It trades about -0.14 of its total potential returns per unit of risk. JCHX Mining Management is currently generating about -0.07 per unit of volatility. If you would invest 4,089 in JCHX Mining Management on August 28, 2024 and sell it today you would lose (194.00) from holding JCHX Mining Management or give up 4.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. JCHX Mining Management
Performance |
| Timeline |
| Changchun BCHT Biote |
| JCHX Mining Management |
Changchun BCHT and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and JCHX Mining
The main advantage of trading using opposite Changchun BCHT and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT 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.| Changchun BCHT vs. Industrial and Commercial | Changchun BCHT vs. Agricultural Bank of | Changchun BCHT vs. China Construction Bank | Changchun BCHT vs. Bank of China |
| JCHX Mining vs. Zijin Mining Group | JCHX Mining vs. Wanhua Chemical Group | JCHX Mining vs. Baoshan Iron Steel | JCHX Mining vs. Shandong Gold Mining |
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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