Correlation Between Jointo Energy and Jiangsu Xinning
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By analyzing existing cross correlation between Jointo Energy Investment and Jiangsu Xinning Modern, you can compare the effects of market volatilities on Jointo Energy and Jiangsu Xinning 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 Jiangsu Xinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Jiangsu Xinning.
Diversification Opportunities for Jointo Energy and Jiangsu Xinning
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jointo and Jiangsu is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Jiangsu Xinning Modern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinning Modern 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 Jiangsu Xinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinning Modern has no effect on the direction of Jointo Energy i.e., Jointo Energy and Jiangsu Xinning go up and down completely randomly.
Pair Corralation between Jointo Energy and Jiangsu Xinning
Assuming the 90 days trading horizon Jointo Energy Investment is expected to generate 0.97 times more return on investment than Jiangsu Xinning. However, Jointo Energy Investment is 1.03 times less risky than Jiangsu Xinning. It trades about -0.1 of its potential returns per unit of risk. Jiangsu Xinning Modern is currently generating about -0.15 per unit of risk. If you would invest 557.00 in Jointo Energy Investment on October 20, 2024 and sell it today you would lose (48.00) from holding Jointo Energy Investment or give up 8.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jointo Energy Investment vs. Jiangsu Xinning Modern
Performance |
| Timeline |
| Jointo Energy Investment |
| Jiangsu Xinning Modern |
Jointo Energy and Jiangsu Xinning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Jiangsu Xinning
The main advantage of trading using opposite Jointo Energy and Jiangsu Xinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Jiangsu Xinning 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 Jiangsu Xinning will offset losses from the drop in Jiangsu Xinning's long position.| Jointo Energy vs. Tibet Huayu Mining | Jointo Energy vs. North Copper Shanxi | Jointo Energy vs. Hainan Mining Co | Jointo Energy vs. China Minmetals Rare |
| Jiangsu Xinning vs. China Petroleum Chemical | Jiangsu Xinning vs. PetroChina Co Ltd | Jiangsu Xinning vs. China State Construction | Jiangsu Xinning vs. China Railway Group |
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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