Correlation Between GreenTech Environmental and JCHX Mining
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By analyzing existing cross correlation between GreenTech Environmental Co and JCHX Mining Management, you can compare the effects of market volatilities on GreenTech Environmental 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 GreenTech Environmental with a short position of JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenTech Environmental and JCHX Mining.
Diversification Opportunities for GreenTech Environmental and JCHX Mining
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between GreenTech and JCHX is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding GreenTech Environmental Co 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 GreenTech Environmental 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 GreenTech Environmental Co 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 GreenTech Environmental i.e., GreenTech Environmental and JCHX Mining go up and down completely randomly.
Pair Corralation between GreenTech Environmental and JCHX Mining
Assuming the 90 days trading horizon GreenTech Environmental is expected to generate 27.53 times less return on investment than JCHX Mining. But when comparing it to its historical volatility, GreenTech Environmental Co is 1.07 times less risky than JCHX Mining. It trades about 0.01 of its potential returns per unit of risk. JCHX Mining Management is currently generating about 0.22 of returns per unit of risk over similar time horizon. 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenTech Environmental Co vs. JCHX Mining Management
Performance |
| Timeline |
| GreenTech Environmental |
| JCHX Mining Management |
GreenTech Environmental and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenTech Environmental and JCHX Mining
The main advantage of trading using opposite GreenTech Environmental and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenTech Environmental 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.The idea behind GreenTech Environmental Co and JCHX Mining Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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