Correlation Between Jointo Energy and Shengda Mining
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By analyzing existing cross correlation between Jointo Energy Investment and Shengda Mining Co, you can compare the effects of market volatilities on Jointo Energy and Shengda 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 Jointo Energy with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Shengda Mining.
Diversification Opportunities for Jointo Energy and Shengda Mining
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jointo and Shengda is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining 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 Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of Jointo Energy i.e., Jointo Energy and Shengda Mining go up and down completely randomly.
Pair Corralation between Jointo Energy and Shengda Mining
Assuming the 90 days trading horizon Jointo Energy Investment is expected to generate 1.12 times more return on investment than Shengda Mining. However, Jointo Energy is 1.12 times more volatile than Shengda Mining Co. It trades about 0.04 of its potential returns per unit of risk. Shengda Mining Co is currently generating about -0.06 per unit of risk. 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jointo Energy Investment vs. Shengda Mining Co
Performance |
| Timeline |
| Jointo Energy Investment |
| Shengda Mining |
Jointo Energy and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Shengda Mining
The main advantage of trading using opposite Jointo Energy and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Shengda 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| Jointo Energy vs. Industrial and Commercial | Jointo Energy vs. China Construction Bank | Jointo Energy vs. Agricultural Bank of | Jointo Energy vs. Bank of China |
| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Wanhua Chemical Group | Shengda Mining vs. Baoshan Iron Steel | Shengda 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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