Correlation Between Jointo Energy and Guangdong Marubi
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By analyzing existing cross correlation between Jointo Energy Investment and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Jointo Energy and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Guangdong Marubi.
Diversification Opportunities for Jointo Energy and Guangdong Marubi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jointo and Guangdong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Jointo Energy i.e., Jointo Energy and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Jointo Energy and Guangdong Marubi
Assuming the 90 days trading horizon Jointo Energy is expected to generate 1.73 times less return on investment than Guangdong Marubi. But when comparing it to its historical volatility, Jointo Energy Investment is 1.58 times less risky than Guangdong Marubi. It trades about 0.1 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,085 in Guangdong Marubi Biotechnology on September 14, 2024 and sell it today you would earn a total of 193.00 from holding Guangdong Marubi Biotechnology or generate 6.26% 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. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Jointo Energy Investment |
| Guangdong Marubi Bio |
Jointo Energy and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Guangdong Marubi
The main advantage of trading using opposite Jointo Energy and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi'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 |
| Guangdong Marubi vs. Agricultural Bank of | Guangdong Marubi vs. Industrial and Commercial | Guangdong Marubi vs. Bank of China | Guangdong Marubi vs. PetroChina Co Ltd |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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