Correlation Between Zoje Resources and Jointo Energy
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By analyzing existing cross correlation between Zoje Resources Investment and Jointo Energy Investment, you can compare the effects of market volatilities on Zoje Resources 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 Zoje Resources with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Jointo Energy.
Diversification Opportunities for Zoje Resources and Jointo Energy
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zoje and Jointo is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources 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 Zoje Resources 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 Zoje Resources 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 Zoje Resources i.e., Zoje Resources and Jointo Energy go up and down completely randomly.
Pair Corralation between Zoje Resources and Jointo Energy
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 1.43 times more return on investment than Jointo Energy. However, Zoje Resources is 1.43 times more volatile than Jointo Energy Investment. It trades about 0.07 of its potential returns per unit of risk. Jointo Energy Investment is currently generating about 0.01 per unit of risk. If you would invest 114.00 in Zoje Resources Investment on August 31, 2024 and sell it today you would earn a total of 157.00 from holding Zoje Resources Investment or generate 137.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.78% |
| Values | Daily Returns |
Zoje Resources Investment vs. Jointo Energy Investment
Performance |
| Timeline |
| Zoje Resources Investment |
| Jointo Energy Investment |
Zoje Resources and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Jointo Energy
The main advantage of trading using opposite Zoje Resources and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources 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.| Zoje Resources vs. Cultural Investment Holdings | Zoje Resources vs. Gome Telecom Equipment | Zoje Resources vs. Bus Online Co | Zoje Resources vs. Holitech Technology Co |
| Jointo Energy vs. Industrial and Commercial | Jointo Energy vs. Kweichow Moutai Co | Jointo Energy vs. Agricultural Bank of | Jointo Energy vs. China Mobile Limited |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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