Correlation Between Jointo Energy and Xinhu Zhongbao
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By analyzing existing cross correlation between Jointo Energy Investment and Xinhu Zhongbao Co, you can compare the effects of market volatilities on Jointo Energy and Xinhu Zhongbao 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 Xinhu Zhongbao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Xinhu Zhongbao.
Diversification Opportunities for Jointo Energy and Xinhu Zhongbao
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jointo and Xinhu is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Xinhu Zhongbao Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhu Zhongbao 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 Xinhu Zhongbao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhu Zhongbao has no effect on the direction of Jointo Energy i.e., Jointo Energy and Xinhu Zhongbao go up and down completely randomly.
Pair Corralation between Jointo Energy and Xinhu Zhongbao
Assuming the 90 days trading horizon Jointo Energy is expected to generate 4.37 times less return on investment than Xinhu Zhongbao. But when comparing it to its historical volatility, Jointo Energy Investment is 1.18 times less risky than Xinhu Zhongbao. It trades about 0.02 of its potential returns per unit of risk. Xinhu Zhongbao Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 239.00 in Xinhu Zhongbao Co on September 14, 2024 and sell it today you would earn a total of 93.00 from holding Xinhu Zhongbao Co or generate 38.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jointo Energy Investment vs. Xinhu Zhongbao Co
Performance |
| Timeline |
| Jointo Energy Investment |
| Xinhu Zhongbao |
Jointo Energy and Xinhu Zhongbao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Xinhu Zhongbao
The main advantage of trading using opposite Jointo Energy and Xinhu Zhongbao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Xinhu Zhongbao 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 Xinhu Zhongbao will offset losses from the drop in Xinhu Zhongbao'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 |
| Xinhu Zhongbao vs. Jointo Energy Investment | Xinhu Zhongbao vs. China Publishing Media | Xinhu Zhongbao vs. Southern PublishingMedia Co | Xinhu Zhongbao vs. Xinhua Winshare Publishing |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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