Correlation Between Shengda Mining and Jointo Energy
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By analyzing existing cross correlation between Shengda Mining Co and Jointo Energy Investment, you can compare the effects of market volatilities on Shengda Mining and Jointo Energy 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 Shengda Mining with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Jointo Energy.
Diversification Opportunities for Shengda Mining and Jointo Energy
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shengda and Jointo is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Jointo Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jointo Energy Investment and Shengda Mining 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 Shengda Mining Co are associated (or correlated) with Jointo Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jointo Energy Investment has no effect on the direction of Shengda Mining i.e., Shengda Mining and Jointo Energy go up and down completely randomly.
Pair Corralation between Shengda Mining and Jointo Energy
Assuming the 90 days trading horizon Shengda Mining Co is expected to under-perform the Jointo Energy. But the stock apears to be less risky and, when comparing its historical volatility, Shengda Mining Co is 1.12 times less risky than Jointo Energy. The stock trades about -0.06 of its potential returns per unit of risk. The Jointo Energy Investment is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 539.00 in Jointo Energy Investment on September 13, 2024 and sell it today you would earn a total of 7.00 from holding Jointo Energy Investment or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengda Mining Co vs. Jointo Energy Investment
Performance |
| Timeline |
| Shengda Mining |
| Jointo Energy Investment |
Shengda Mining and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Jointo Energy
The main advantage of trading using opposite Shengda Mining and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Jointo Energy 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 Jointo Energy will offset losses from the drop in Jointo Energy's long position.| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Wanhua Chemical Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining vs. Shandong Gold Mining |
| Jointo Energy vs. Industrial and Commercial | Jointo Energy vs. China Construction Bank | Jointo Energy vs. Agricultural Bank of | Jointo Energy vs. Bank of China |
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 CEOs Directory module to screen CEOs from public companies around the world.
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