Correlation Between Jointo Energy and Hainan Mining
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By analyzing existing cross correlation between Jointo Energy Investment and Hainan Mining Co, you can compare the effects of market volatilities on Jointo Energy and Hainan 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Hainan Mining.
Diversification Opportunities for Jointo Energy and Hainan Mining
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jointo and Hainan is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Jointo Energy i.e., Jointo Energy and Hainan Mining go up and down completely randomly.
Pair Corralation between Jointo Energy and Hainan Mining
Assuming the 90 days trading horizon Jointo Energy Investment is expected to under-perform the Hainan Mining. But the stock apears to be less risky and, when comparing its historical volatility, Jointo Energy Investment is 1.08 times less risky than Hainan Mining. The stock trades about -0.02 of its potential returns per unit of risk. The Hainan Mining Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 673.00 in Hainan Mining Co on September 12, 2024 and sell it today you would earn a total of 54.00 from holding Hainan Mining Co or generate 8.02% 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. Hainan Mining Co
Performance |
| Timeline |
| Jointo Energy Investment |
| Hainan Mining |
Jointo Energy and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Hainan Mining
The main advantage of trading using opposite Jointo Energy and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Hainan 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Jointo Energy vs. Tieling Newcity Investment | Jointo Energy vs. Zhongrun Resources Investment | Jointo Energy vs. Zhejiang Kingland Pipeline | Jointo Energy vs. Dymatic Chemicals |
| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Rongsheng Petrochemical Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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