Correlation Between Xizi Clean and Jointo Energy
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By analyzing existing cross correlation between Xizi Clean Energy and Jointo Energy Investment, you can compare the effects of market volatilities on Xizi Clean 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 Xizi Clean with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Jointo Energy.
Diversification Opportunities for Xizi Clean and Jointo Energy
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xizi and Jointo is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy 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 Xizi Clean 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 Xizi Clean Energy 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 Xizi Clean i.e., Xizi Clean and Jointo Energy go up and down completely randomly.
Pair Corralation between Xizi Clean and Jointo Energy
Assuming the 90 days trading horizon Xizi Clean Energy is expected to under-perform the Jointo Energy. But the stock apears to be less risky and, when comparing its historical volatility, Xizi Clean Energy is 2.37 times less risky than Jointo Energy. The stock trades about -0.07 of its potential returns per unit of risk. The Jointo Energy Investment is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 508.00 in Jointo Energy Investment on September 27, 2024 and sell it today you would earn a total of 86.00 from holding Jointo Energy Investment or generate 16.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xizi Clean Energy vs. Jointo Energy Investment
Performance |
| Timeline |
| Xizi Clean Energy |
| Jointo Energy Investment |
Xizi Clean and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xizi Clean and Jointo Energy
The main advantage of trading using opposite Xizi Clean and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean 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.| Xizi Clean vs. Bank of China | Xizi Clean vs. Kweichow Moutai Co | Xizi Clean vs. PetroChina Co Ltd | Xizi Clean vs. Bank of Communications |
| Jointo Energy vs. Tianjin Ruixin Technology | Jointo Energy vs. Jiujiang Shanshui Technology | Jointo Energy vs. Shanghai Rongtai Health | Jointo Energy vs. Xizi Clean Energy |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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