Correlation Between Jointo Energy and Shenzhen Silver
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By analyzing existing cross correlation between Jointo Energy Investment and Shenzhen Silver Basis, you can compare the effects of market volatilities on Jointo Energy and Shenzhen Silver 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 Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Shenzhen Silver.
Diversification Opportunities for Jointo Energy and Shenzhen Silver
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jointo and Shenzhen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Jointo Energy i.e., Jointo Energy and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Jointo Energy and Shenzhen Silver
Assuming the 90 days trading horizon Jointo Energy Investment is expected to generate 0.48 times more return on investment than Shenzhen Silver. However, Jointo Energy Investment is 2.09 times less risky than Shenzhen Silver. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about 0.01 per unit of risk. If you would invest 538.00 in Jointo Energy Investment on September 14, 2024 and sell it today you would earn a total of 15.00 from holding Jointo Energy Investment or generate 2.79% 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 Silver Basis
Performance |
| Timeline |
| Jointo Energy Investment |
| Shenzhen Silver Basis |
Jointo Energy and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Shenzhen Silver
The main advantage of trading using opposite Jointo Energy and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Shenzhen Silver 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 Silver will offset losses from the drop in Shenzhen Silver'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 |
| Shenzhen Silver vs. Jointo Energy Investment | Shenzhen Silver vs. Harbin Air Conditioning | Shenzhen Silver vs. Harbin Hatou Investment | Shenzhen Silver vs. Jiangsu Yueda Investment |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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