Correlation Between Shengtak New and Jointo Energy
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By analyzing existing cross correlation between Shengtak New Material and Jointo Energy Investment, you can compare the effects of market volatilities on Shengtak New 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 Shengtak New with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengtak New and Jointo Energy.
Diversification Opportunities for Shengtak New and Jointo Energy
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shengtak and Jointo is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Shengtak New Material 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 Shengtak New 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 Shengtak New Material 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 Shengtak New i.e., Shengtak New and Jointo Energy go up and down completely randomly.
Pair Corralation between Shengtak New and Jointo Energy
Assuming the 90 days trading horizon Shengtak New Material is expected to generate 1.4 times more return on investment than Jointo Energy. However, Shengtak New is 1.4 times more volatile than Jointo Energy Investment. It trades about 0.01 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 3,318 in Shengtak New Material on October 10, 2024 and sell it today you would lose (196.00) from holding Shengtak New Material or give up 5.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengtak New Material vs. Jointo Energy Investment
Performance |
| Timeline |
| Shengtak New Material |
| Jointo Energy Investment |
Shengtak New and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengtak New and Jointo Energy
The main advantage of trading using opposite Shengtak New and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengtak New 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.| Shengtak New vs. Winner Medical Co | Shengtak New vs. Shuhua Sports Co | Shengtak New vs. Marssenger Kitchenware Co | Shengtak New vs. Hengkang Medical Group |
| Jointo Energy vs. Shengtak New Material | Jointo Energy vs. Zoy Home Furnishing | Jointo Energy vs. Suofeiya Home Collection | Jointo Energy vs. Vohringer Home Technology |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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