Correlation Between Jointo Energy and Shaanxi Energy
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By analyzing existing cross correlation between Jointo Energy Investment and Shaanxi Energy Investment, you can compare the effects of market volatilities on Jointo Energy and Shaanxi 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 Jointo Energy with a short position of Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Shaanxi Energy.
Diversification Opportunities for Jointo Energy and Shaanxi Energy
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jointo and Shaanxi is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy 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 Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Jointo Energy i.e., Jointo Energy and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Jointo Energy and Shaanxi Energy
Assuming the 90 days trading horizon Jointo Energy Investment is expected to generate 1.79 times more return on investment than Shaanxi Energy. However, Jointo Energy is 1.79 times more volatile than Shaanxi Energy Investment. It trades about 0.1 of its potential returns per unit of risk. Shaanxi Energy Investment is currently generating about -0.08 per unit of risk. If you would invest 533.00 in Jointo Energy Investment on September 14, 2024 and sell it today you would earn a total of 20.00 from holding Jointo Energy Investment or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jointo Energy Investment vs. Shaanxi Energy Investment
Performance |
| Timeline |
| Jointo Energy Investment |
| Shaanxi Energy Investment |
Jointo Energy and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Shaanxi Energy
The main advantage of trading using opposite Jointo Energy and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Shaanxi 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.| Jointo Energy vs. Changjiang Jinggong Steel | Jointo Energy vs. Guangdong Qunxing Toys | Jointo Energy vs. Hubei Geoway Investment | Jointo Energy vs. Shenzhen MYS Environmental |
| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. HOB Biotech Group | Shaanxi Energy vs. Ming Yang Smart | Shaanxi Energy vs. 159681 |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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