Correlation Between Jizhong Energy and Henan Lantian
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By analyzing existing cross correlation between Jizhong Energy Resources and Henan Lantian Gas, you can compare the effects of market volatilities on Jizhong Energy and Henan Lantian 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 Jizhong Energy with a short position of Henan Lantian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jizhong Energy and Henan Lantian.
Diversification Opportunities for Jizhong Energy and Henan Lantian
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jizhong and Henan is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jizhong Energy Resources and Henan Lantian Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Lantian Gas and Jizhong 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 Jizhong Energy Resources are associated (or correlated) with Henan Lantian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Lantian Gas has no effect on the direction of Jizhong Energy i.e., Jizhong Energy and Henan Lantian go up and down completely randomly.
Pair Corralation between Jizhong Energy and Henan Lantian
Assuming the 90 days trading horizon Jizhong Energy Resources is expected to under-perform the Henan Lantian. In addition to that, Jizhong Energy is 1.2 times more volatile than Henan Lantian Gas. It trades about -0.15 of its total potential returns per unit of risk. Henan Lantian Gas is currently generating about -0.12 per unit of volatility. If you would invest 1,136 in Henan Lantian Gas on November 3, 2024 and sell it today you would lose (29.00) from holding Henan Lantian Gas or give up 2.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jizhong Energy Resources vs. Henan Lantian Gas
Performance |
| Timeline |
| Jizhong Energy Resources |
| Henan Lantian Gas |
Jizhong Energy and Henan Lantian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jizhong Energy and Henan Lantian
The main advantage of trading using opposite Jizhong Energy and Henan Lantian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jizhong Energy position performs unexpectedly, Henan Lantian 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 Henan Lantian will offset losses from the drop in Henan Lantian's long position.| Jizhong Energy vs. Qtone Education Group | Jizhong Energy vs. Southern PublishingMedia Co | Jizhong Energy vs. China Publishing Media | Jizhong Energy vs. CareRay Digital Medical |
| Henan Lantian vs. Wintao Communications Co | Henan Lantian vs. Tongyu Communication | Henan Lantian vs. Beijing Bewinner Communications | Henan Lantian vs. Bank of Communications |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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