Correlation Between Jointo Energy and Huatian Hotel
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By analyzing existing cross correlation between Jointo Energy Investment and Huatian Hotel Group, you can compare the effects of market volatilities on Jointo Energy and Huatian Hotel 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 Jointo Energy with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Huatian Hotel.
Diversification Opportunities for Jointo Energy and Huatian Hotel
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jointo and Huatian is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Huatian Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huatian Hotel Group and Jointo Energy 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 Jointo Energy Investment are associated (or correlated) with Huatian Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huatian Hotel Group has no effect on the direction of Jointo Energy i.e., Jointo Energy and Huatian Hotel go up and down completely randomly.
Pair Corralation between Jointo Energy and Huatian Hotel
Assuming the 90 days trading horizon Jointo Energy Investment is expected to generate 1.25 times more return on investment than Huatian Hotel. However, Jointo Energy is 1.25 times more volatile than Huatian Hotel Group. It trades about -0.06 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about -0.22 per unit of risk. If you would invest 533.00 in Jointo Energy Investment on October 18, 2024 and sell it today you would lose (34.00) from holding Jointo Energy Investment or give up 6.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jointo Energy Investment vs. Huatian Hotel Group
Performance |
| Timeline |
| Jointo Energy Investment |
| Huatian Hotel Group |
Jointo Energy and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Huatian Hotel
The main advantage of trading using opposite Jointo Energy and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Huatian Hotel 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 Huatian Hotel will offset losses from the drop in Huatian Hotel's long position.| Jointo Energy vs. GRG Banking Equipment | Jointo Energy vs. Lecron Energy Saving | Jointo Energy vs. Jiangsu Financial Leasing | Jointo Energy vs. Ping An Insurance |
| Huatian Hotel vs. Gem Year Industrial Co | Huatian Hotel vs. Xinjiang Baodi Mining | Huatian Hotel vs. Jonjee Hi tech Industrial | Huatian Hotel vs. Ningbo Fujia Industrial |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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