Correlation Between Jointo Energy and Citic Guoan
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By analyzing existing cross correlation between Jointo Energy Investment and Citic Guoan Wine, you can compare the effects of market volatilities on Jointo Energy and Citic Guoan 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 Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Citic Guoan.
Diversification Opportunities for Jointo Energy and Citic Guoan
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jointo and Citic is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine 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 Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of Jointo Energy i.e., Jointo Energy and Citic Guoan go up and down completely randomly.
Pair Corralation between Jointo Energy and Citic Guoan
Assuming the 90 days trading horizon Jointo Energy is expected to generate 2.15 times less return on investment than Citic Guoan. But when comparing it to its historical volatility, Jointo Energy Investment is 1.17 times less risky than Citic Guoan. It trades about 0.02 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 449.00 in Citic Guoan Wine on October 25, 2024 and sell it today you would earn a total of 45.00 from holding Citic Guoan Wine or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jointo Energy Investment vs. Citic Guoan Wine
Performance |
| Timeline |
| Jointo Energy Investment |
| Citic Guoan Wine |
Jointo Energy and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Citic Guoan
The main advantage of trading using opposite Jointo Energy and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Citic Guoan 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 Citic Guoan will offset losses from the drop in Citic Guoan's long position.| Jointo Energy vs. Changchun BCHT Biotechnology | Jointo Energy vs. Pengxin International Mining | Jointo Energy vs. Shenyang Blue Silver | Jointo Energy vs. Western Mining Co |
| Citic Guoan vs. Agricultural Bank of | Citic Guoan vs. Postal Savings Bank | Citic Guoan vs. Bank of Communications | Citic Guoan vs. China Merchants Bank |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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