Correlation Between Jointo Energy and Sanxiang Advanced
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By analyzing existing cross correlation between Jointo Energy Investment and Sanxiang Advanced Materials, you can compare the effects of market volatilities on Jointo Energy and Sanxiang Advanced 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 Sanxiang Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Sanxiang Advanced.
Diversification Opportunities for Jointo Energy and Sanxiang Advanced
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jointo and Sanxiang is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Sanxiang Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanxiang Advanced 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 Sanxiang Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanxiang Advanced has no effect on the direction of Jointo Energy i.e., Jointo Energy and Sanxiang Advanced go up and down completely randomly.
Pair Corralation between Jointo Energy and Sanxiang Advanced
Assuming the 90 days trading horizon Jointo Energy Investment is expected to under-perform the Sanxiang Advanced. In addition to that, Jointo Energy is 1.61 times more volatile than Sanxiang Advanced Materials. It trades about -0.1 of its total potential returns per unit of risk. Sanxiang Advanced Materials is currently generating about 0.03 per unit of volatility. If you would invest 1,669 in Sanxiang Advanced Materials on October 14, 2024 and sell it today you would earn a total of 18.00 from holding Sanxiang Advanced Materials or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jointo Energy Investment vs. Sanxiang Advanced Materials
Performance |
| Timeline |
| Jointo Energy Investment |
| Sanxiang Advanced |
Jointo Energy and Sanxiang Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Sanxiang Advanced
The main advantage of trading using opposite Jointo Energy and Sanxiang Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Sanxiang Advanced 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 Sanxiang Advanced will offset losses from the drop in Sanxiang Advanced's long position.| Jointo Energy vs. Tibet Huayu Mining | Jointo Energy vs. Western Mining Co | Jointo Energy vs. Chenzhou Jingui Silver | Jointo Energy vs. Guangdong Silvere Sci |
| Sanxiang Advanced vs. Jointo Energy Investment | Sanxiang Advanced vs. Guangxi Wuzhou Communications | Sanxiang Advanced vs. Songz Automobile Air | Sanxiang Advanced vs. Jiangsu Yueda 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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