Correlation Between Jointo Energy and Hunan Investment
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By analyzing existing cross correlation between Jointo Energy Investment and Hunan Investment Group, you can compare the effects of market volatilities on Jointo Energy and Hunan Investment 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 Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Hunan Investment.
Diversification Opportunities for Jointo Energy and Hunan Investment
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jointo and Hunan is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment 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 Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Jointo Energy i.e., Jointo Energy and Hunan Investment go up and down completely randomly.
Pair Corralation between Jointo Energy and Hunan Investment
Assuming the 90 days trading horizon Jointo Energy is expected to generate 1.32 times less return on investment than Hunan Investment. In addition to that, Jointo Energy is 1.07 times more volatile than Hunan Investment Group. It trades about 0.01 of its total potential returns per unit of risk. Hunan Investment Group is currently generating about 0.01 per unit of volatility. If you would invest 510.00 in Hunan Investment Group on November 28, 2024 and sell it today you would earn a total of 12.00 from holding Hunan Investment Group or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jointo Energy Investment vs. Hunan Investment Group
Performance |
| Timeline |
| Jointo Energy Investment |
| Hunan Investment |
Jointo Energy and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Hunan Investment
The main advantage of trading using opposite Jointo Energy and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Jointo Energy vs. Kweichow Moutai Co | Jointo Energy vs. Contemporary Amperex Technology | Jointo Energy vs. G bits Network Technology | Jointo Energy vs. BYD Co Ltd |
| Hunan Investment vs. Jiangsu Jinling Sports | Hunan Investment vs. Rising Nonferrous Metals | Hunan Investment vs. Shanghai Rongtai Health | Hunan Investment vs. By health |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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