Correlation Between Jointo Energy and Chengtun Mining
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By analyzing existing cross correlation between Jointo Energy Investment and Chengtun Mining Group, you can compare the effects of market volatilities on Jointo Energy and Chengtun Mining 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 Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Chengtun Mining.
Diversification Opportunities for Jointo Energy and Chengtun Mining
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jointo and Chengtun is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Chengtun Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengtun Mining Group 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 Chengtun Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengtun Mining Group has no effect on the direction of Jointo Energy i.e., Jointo Energy and Chengtun Mining go up and down completely randomly.
Pair Corralation between Jointo Energy and Chengtun Mining
Assuming the 90 days trading horizon Jointo Energy Investment is expected to under-perform the Chengtun Mining. But the stock apears to be less risky and, when comparing its historical volatility, Jointo Energy Investment is 1.18 times less risky than Chengtun Mining. The stock trades about -0.03 of its potential returns per unit of risk. The Chengtun Mining Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 466.00 in Chengtun Mining Group on August 31, 2024 and sell it today you would earn a total of 16.00 from holding Chengtun Mining Group or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jointo Energy Investment vs. Chengtun Mining Group
Performance |
| Timeline |
| Jointo Energy Investment |
| Chengtun Mining Group |
Jointo Energy and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Chengtun Mining
The main advantage of trading using opposite Jointo Energy and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Chengtun Mining 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 Chengtun Mining will offset losses from the drop in Chengtun Mining's long position.| Jointo Energy vs. Industrial and Commercial | Jointo Energy vs. Kweichow Moutai Co | Jointo Energy vs. Agricultural Bank of | Jointo Energy vs. China Mobile Limited |
| Chengtun Mining vs. Northern United Publishing | Chengtun Mining vs. Dymatic Chemicals | Chengtun Mining vs. StarPower Semiconductor | Chengtun Mining vs. Chinese Universe 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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