Correlation Between Jointo Energy and Shenzhen Clou
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By analyzing existing cross correlation between Jointo Energy Investment and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Jointo Energy and Shenzhen Clou 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 Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Shenzhen Clou.
Diversification Opportunities for Jointo Energy and Shenzhen Clou
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jointo and Shenzhen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics 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 Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of Jointo Energy i.e., Jointo Energy and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Jointo Energy and Shenzhen Clou
Assuming the 90 days trading horizon Jointo Energy Investment is expected to under-perform the Shenzhen Clou. But the stock apears to be less risky and, when comparing its historical volatility, Jointo Energy Investment is 2.5 times less risky than Shenzhen Clou. The stock trades about -0.06 of its potential returns per unit of risk. The Shenzhen Clou Electronics is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 424.00 in Shenzhen Clou Electronics on September 1, 2024 and sell it today you would earn a total of 27.00 from holding Shenzhen Clou Electronics or generate 6.37% 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. Shenzhen Clou Electronics
Performance |
| Timeline |
| Jointo Energy Investment |
| Shenzhen Clou Electronics |
Jointo Energy and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Shenzhen Clou
The main advantage of trading using opposite Jointo Energy and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Shenzhen Clou 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 Shenzhen Clou will offset losses from the drop in Shenzhen Clou's long position.| Jointo Energy vs. Chengdu Kanghua Biological | Jointo Energy vs. Beijing Wantai Biological | Jointo Energy vs. Suzhou Novoprotein Scientific | Jointo Energy vs. Aluminum Corp of |
| Shenzhen Clou vs. Maxvision Technology Corp | Shenzhen Clou vs. Huaxia Fund Management | Shenzhen Clou vs. Guangzhou KingTeller Technology | Shenzhen Clou vs. 360 Security Technology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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