Correlation Between Ford and JCHX Mining
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By analyzing existing cross correlation between Ford Motor and JCHX Mining Management, you can compare the effects of market volatilities on Ford 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 Ford with a short position of JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and JCHX Mining.
Diversification Opportunities for Ford and JCHX Mining
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ford and JCHX is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor 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 Ford 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 Ford Motor 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 Ford i.e., Ford and JCHX Mining go up and down completely randomly.
Pair Corralation between Ford and JCHX Mining
Taking into account the 90-day investment horizon Ford Motor is expected to under-perform the JCHX Mining. But the stock apears to be less risky and, when comparing its historical volatility, Ford Motor is 1.4 times less risky than JCHX Mining. The stock trades about -0.01 of its potential returns per unit of risk. The JCHX Mining Management is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,090 in JCHX Mining Management on October 26, 2024 and sell it today you would lose (64.00) from holding JCHX Mining Management or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.37% |
| Values | Daily Returns |
Ford Motor vs. JCHX Mining Management
Performance |
| Timeline |
| Ford Motor |
| JCHX Mining Management |
Ford and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and JCHX Mining
The main advantage of trading using opposite Ford and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford 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 Ford Motor 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.| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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