Correlation Between Jointo Energy and Guangdong Wens
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By analyzing existing cross correlation between Jointo Energy Investment and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Jointo Energy and Guangdong Wens 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 Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Guangdong Wens.
Diversification Opportunities for Jointo Energy and Guangdong Wens
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jointo and Guangdong is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Jointo Energy i.e., Jointo Energy and Guangdong Wens go up and down completely randomly.
Pair Corralation between Jointo Energy and Guangdong Wens
Assuming the 90 days trading horizon Jointo Energy Investment is expected to under-perform the Guangdong Wens. In addition to that, Jointo Energy is 2.09 times more volatile than Guangdong Wens Foodstuff. It trades about -0.3 of its total potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.24 per unit of volatility. If you would invest 1,696 in Guangdong Wens Foodstuff on October 28, 2024 and sell it today you would lose (96.00) from holding Guangdong Wens Foodstuff or give up 5.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jointo Energy Investment vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Jointo Energy Investment |
| Guangdong Wens Foodstuff |
Jointo Energy and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Guangdong Wens
The main advantage of trading using opposite Jointo Energy and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' long position.| Jointo Energy vs. China Life Insurance | Jointo Energy vs. Cinda Securities Co | Jointo Energy vs. Piotech Inc A | Jointo Energy vs. Dongxing Sec Co |
| Guangdong Wens vs. Luyin Investment Group | Guangdong Wens vs. Cultural Investment Holdings | Guangdong Wens vs. China Asset Management | Guangdong Wens vs. Jointo Energy 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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