Correlation Between Zhongrun Resources and Jointo Energy
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By analyzing existing cross correlation between Zhongrun Resources Investment and Jointo Energy Investment, you can compare the effects of market volatilities on Zhongrun Resources and Jointo Energy 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 Zhongrun Resources with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Jointo Energy.
Diversification Opportunities for Zhongrun Resources and Jointo Energy
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongrun and Jointo is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Jointo Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jointo Energy Investment and Zhongrun Resources 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 Zhongrun Resources Investment are associated (or correlated) with Jointo Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jointo Energy Investment has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Jointo Energy go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Jointo Energy
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to under-perform the Jointo Energy. In addition to that, Zhongrun Resources is 2.14 times more volatile than Jointo Energy Investment. It trades about -0.28 of its total potential returns per unit of risk. Jointo Energy Investment is currently generating about 0.04 per unit of volatility. If you would invest 539.00 in Jointo Energy Investment on September 13, 2024 and sell it today you would earn a total of 7.00 from holding Jointo Energy Investment or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Jointo Energy Investment
Performance |
| Timeline |
| Zhongrun Resources |
| Jointo Energy Investment |
Zhongrun Resources and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Jointo Energy
The main advantage of trading using opposite Zhongrun Resources and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Jointo Energy 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 Jointo Energy will offset losses from the drop in Jointo Energy's long position.| Zhongrun Resources vs. China Life Insurance | Zhongrun Resources vs. Cinda Securities Co | Zhongrun Resources vs. Piotech Inc A | Zhongrun Resources vs. Dongxing Sec Co |
| Jointo Energy vs. Industrial and Commercial | Jointo Energy vs. China Construction Bank | Jointo Energy vs. Agricultural Bank of | Jointo Energy vs. Bank of China |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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