Correlation Between JCHX Mining and Jiangxi Selon

Can any of the company-specific risk be diversified away by investing in both JCHX Mining and Jiangxi Selon at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JCHX Mining and Jiangxi Selon into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JCHX Mining Management and Jiangxi Selon Industrial, you can compare the effects of market volatilities on JCHX Mining and Jiangxi Selon 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 JCHX Mining with a short position of Jiangxi Selon. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Jiangxi Selon.

Diversification Opportunities for JCHX Mining and Jiangxi Selon

-0.09

Correlation Coefficient

JCHX Mining  Jiangxi Selon

Good diversification

The 3 months correlation between JCHX and Jiangxi is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Jiangxi Selon Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Selon Industrial and JCHX Mining 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 JCHX Mining Management are associated (or correlated) with Jiangxi Selon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Selon Industrial has no effect on the direction of JCHX Mining i.e., JCHX Mining and Jiangxi Selon go up and down completely randomly.

Pair Corralation between JCHX Mining and Jiangxi Selon

Assuming the 90 days trading horizon JCHX Mining is expected to generate 6.04 times less return on investment than Jiangxi Selon. But when comparing it to its historical volatility, JCHX Mining Management is 1.03 times less risky than Jiangxi Selon. It trades about 0.01 of its potential returns per unit of risk. Jiangxi Selon Industrial is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  692.00  in Jiangxi Selon Industrial on November 28, 2024 and sell it today you would earn a total of  58.00  from holding Jiangxi Selon Industrial or generate 8.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.28%
Values	Daily Returns

JCHX Mining Management  vs.  Jiangxi Selon Industrial

JCHX Mining Management

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JCHX Mining Management are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, JCHX Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jiangxi Selon Industrial

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Jiangxi Selon Industrial are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Jiangxi Selon may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with JCHX Mining and Jiangxi Selon

The main advantage of trading using opposite JCHX Mining and Jiangxi Selon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Jiangxi Selon 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 Jiangxi Selon will offset losses from the drop in Jiangxi Selon's long position.

The idea behind JCHX Mining Management and Jiangxi Selon Industrial 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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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.