Correlation Between Jointo Energy and LianChuang Electronic
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By analyzing existing cross correlation between Jointo Energy Investment and LianChuang Electronic Technology, you can compare the effects of market volatilities on Jointo Energy and LianChuang Electronic 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 LianChuang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and LianChuang Electronic.
Diversification Opportunities for Jointo Energy and LianChuang Electronic
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jointo and LianChuang is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and LianChuang Electronic Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianChuang Electronic 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 LianChuang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianChuang Electronic has no effect on the direction of Jointo Energy i.e., Jointo Energy and LianChuang Electronic go up and down completely randomly.
Pair Corralation between Jointo Energy and LianChuang Electronic
Assuming the 90 days trading horizon Jointo Energy Investment is expected to generate 0.74 times more return on investment than LianChuang Electronic. However, Jointo Energy Investment is 1.35 times less risky than LianChuang Electronic. It trades about 0.0 of its potential returns per unit of risk. LianChuang Electronic Technology is currently generating about -0.01 per unit of risk. If you would invest 534.00 in Jointo Energy Investment on October 16, 2024 and sell it today you would lose (49.00) from holding Jointo Energy Investment or give up 9.18% 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. LianChuang Electronic Technolo
Performance |
| Timeline |
| Jointo Energy Investment |
| LianChuang Electronic |
Jointo Energy and LianChuang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and LianChuang Electronic
The main advantage of trading using opposite Jointo Energy and LianChuang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, LianChuang Electronic 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 LianChuang Electronic will offset losses from the drop in LianChuang Electronic's long position.| Jointo Energy vs. Thunder Software Technology | Jointo Energy vs. Rising Nonferrous Metals | Jointo Energy vs. ZYF Lopsking Aluminum | Jointo Energy vs. Fujian Boss Software |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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