Correlation Between Jointo Energy and Tongxing Environmental
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By analyzing existing cross correlation between Jointo Energy Investment and Tongxing Environmental Protection, you can compare the effects of market volatilities on Jointo Energy and Tongxing Environmental 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 Tongxing Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Tongxing Environmental.
Diversification Opportunities for Jointo Energy and Tongxing Environmental
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jointo and Tongxing is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Tongxing Environmental Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongxing Environmental 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 Tongxing Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongxing Environmental has no effect on the direction of Jointo Energy i.e., Jointo Energy and Tongxing Environmental go up and down completely randomly.
Pair Corralation between Jointo Energy and Tongxing Environmental
Assuming the 90 days trading horizon Jointo Energy Investment is expected to generate 0.79 times more return on investment than Tongxing Environmental. However, Jointo Energy Investment is 1.26 times less risky than Tongxing Environmental. It trades about 0.04 of its potential returns per unit of risk. Tongxing Environmental Protection is currently generating about -0.09 per unit of risk. If you would invest 511.00 in Jointo Energy Investment on October 26, 2024 and sell it today you would earn a total of 14.00 from holding Jointo Energy Investment or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jointo Energy Investment vs. Tongxing Environmental Protect
Performance |
| Timeline |
| Jointo Energy Investment |
| Tongxing Environmental |
Jointo Energy and Tongxing Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Tongxing Environmental
The main advantage of trading using opposite Jointo Energy and Tongxing Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Tongxing Environmental 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 Tongxing Environmental will offset losses from the drop in Tongxing Environmental's long position.| Jointo Energy vs. Peoples Insurance of | Jointo Energy vs. Ningbo Jintian Copper | Jointo Energy vs. Tieling Newcity Investment | Jointo Energy vs. Xiandai Investment Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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