Correlation Between China Minmetals and Jointo Energy
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By analyzing existing cross correlation between China Minmetals Rare and Jointo Energy Investment, you can compare the effects of market volatilities on China Minmetals 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 China Minmetals with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Jointo Energy.
Diversification Opportunities for China Minmetals and Jointo Energy
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Jointo is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare 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 China Minmetals 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 China Minmetals Rare 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 China Minmetals i.e., China Minmetals and Jointo Energy go up and down completely randomly.
Pair Corralation between China Minmetals and Jointo Energy
Assuming the 90 days trading horizon China Minmetals Rare is expected to generate 1.11 times more return on investment than Jointo Energy. However, China Minmetals is 1.11 times more volatile than Jointo Energy Investment. It trades about 0.09 of its potential returns per unit of risk. Jointo Energy Investment is currently generating about 0.07 per unit of risk. If you would invest 2,216 in China Minmetals Rare on November 2, 2024 and sell it today you would earn a total of 543.00 from holding China Minmetals Rare or generate 24.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. Jointo Energy Investment
Performance |
| Timeline |
| China Minmetals Rare |
| Jointo Energy Investment |
China Minmetals and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Jointo Energy
The main advantage of trading using opposite China Minmetals and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals 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.| China Minmetals vs. Ningbo Tip Rubber | China Minmetals vs. Nanya New Material | China Minmetals vs. Orinko Advanced Plastics | China Minmetals vs. Guangdong Jingyi Metal |
| Jointo Energy vs. Strait Innovation Internet | Jointo Energy vs. Dongguan Tarry Electronics | Jointo Energy vs. Goke Microelectronics Co | Jointo Energy vs. Shenzhen Clou Electronics |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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