Correlation Between Shaanxi Energy and Jointo Energy
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By analyzing existing cross correlation between Shaanxi Energy Investment and Jointo Energy Investment, you can compare the effects of market volatilities on Shaanxi Energy 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 Shaanxi Energy with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Energy and Jointo Energy.
Diversification Opportunities for Shaanxi Energy and Jointo Energy
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shaanxi and Jointo is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Energy Investment 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 Shaanxi 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 Shaanxi Energy Investment 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 Shaanxi Energy i.e., Shaanxi Energy and Jointo Energy go up and down completely randomly.
Pair Corralation between Shaanxi Energy and Jointo Energy
Assuming the 90 days trading horizon Shaanxi Energy Investment is expected to under-perform the Jointo Energy. But the stock apears to be less risky and, when comparing its historical volatility, Shaanxi Energy Investment is 1.79 times less risky than Jointo Energy. The stock trades about -0.08 of its potential returns per unit of risk. The Jointo Energy Investment is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 533.00 in Jointo Energy Investment on September 14, 2024 and sell it today you would earn a total of 20.00 from holding Jointo Energy Investment or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Energy Investment vs. Jointo Energy Investment
Performance |
| Timeline |
| Shaanxi Energy Investment |
| Jointo Energy Investment |
Shaanxi Energy and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Energy and Jointo Energy
The main advantage of trading using opposite Shaanxi Energy and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Energy 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.| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. HOB Biotech Group | Shaanxi Energy vs. Ming Yang Smart | Shaanxi Energy vs. 159681 |
| Jointo Energy vs. Changjiang Jinggong Steel | Jointo Energy vs. Guangdong Qunxing Toys | Jointo Energy vs. Hubei Geoway Investment | Jointo Energy vs. Shenzhen MYS Environmental |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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