Correlation Between Jointo Energy and Shanghai Huayi
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By analyzing existing cross correlation between Jointo Energy Investment and Shanghai Huayi Group, you can compare the effects of market volatilities on Jointo Energy and Shanghai Huayi 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 Shanghai Huayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Shanghai Huayi.
Diversification Opportunities for Jointo Energy and Shanghai Huayi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jointo and Shanghai is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Shanghai Huayi Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Huayi 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 Shanghai Huayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Huayi Group has no effect on the direction of Jointo Energy i.e., Jointo Energy and Shanghai Huayi go up and down completely randomly.
Pair Corralation between Jointo Energy and Shanghai Huayi
Assuming the 90 days trading horizon Jointo Energy is expected to generate 2.14 times less return on investment than Shanghai Huayi. In addition to that, Jointo Energy is 1.57 times more volatile than Shanghai Huayi Group. It trades about 0.04 of its total potential returns per unit of risk. Shanghai Huayi Group is currently generating about 0.13 per unit of volatility. If you would invest 55.00 in Shanghai Huayi Group on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Shanghai Huayi Group or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jointo Energy Investment vs. Shanghai Huayi Group
Performance |
| Timeline |
| Jointo Energy Investment |
| Shanghai Huayi Group |
Jointo Energy and Shanghai Huayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Shanghai Huayi
The main advantage of trading using opposite Jointo Energy and Shanghai Huayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Shanghai Huayi 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 Shanghai Huayi will offset losses from the drop in Shanghai Huayi's long position.| Jointo Energy vs. Industrial and Commercial | Jointo Energy vs. China Construction Bank | Jointo Energy vs. Agricultural Bank of | Jointo Energy vs. Bank of China |
| Shanghai Huayi vs. Zijin Mining Group | Shanghai Huayi vs. Wanhua Chemical Group | Shanghai Huayi vs. Baoshan Iron Steel | Shanghai Huayi vs. Shandong Gold Mining |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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