Correlation Between Shandong Mining and Jointo Energy
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By analyzing existing cross correlation between Shandong Mining Machinery and Jointo Energy Investment, you can compare the effects of market volatilities on Shandong 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 Shandong Mining with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Jointo Energy.
Diversification Opportunities for Shandong Mining and Jointo Energy
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Jointo is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery 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 Shandong 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 Shandong Mining Machinery 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 Shandong Mining i.e., Shandong Mining and Jointo Energy go up and down completely randomly.
Pair Corralation between Shandong Mining and Jointo Energy
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 3.56 times more return on investment than Jointo Energy. However, Shandong Mining is 3.56 times more volatile than Jointo Energy Investment. It trades about 0.4 of its potential returns per unit of risk. Jointo Energy Investment is currently generating about 0.04 per unit of risk. If you would invest 294.00 in Shandong Mining Machinery on September 13, 2024 and sell it today you would earn a total of 214.00 from holding Shandong Mining Machinery or generate 72.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Mining Machinery vs. Jointo Energy Investment
Performance |
| Timeline |
| Shandong Mining Machinery |
| Jointo Energy Investment |
Shandong Mining and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Jointo Energy
The main advantage of trading using opposite Shandong Mining and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong 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.| Shandong Mining vs. China Petroleum Chemical | Shandong Mining vs. PetroChina Co Ltd | Shandong Mining vs. China State Construction | Shandong Mining vs. China Railway Group |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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