Correlation Between Jiujiang Shanshui and Jointo Energy
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Jointo Energy Investment, you can compare the effects of market volatilities on Jiujiang Shanshui 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 Jiujiang Shanshui with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Jointo Energy.
Diversification Opportunities for Jiujiang Shanshui and Jointo Energy
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiujiang and Jointo is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology 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 Jiujiang Shanshui 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 Jiujiang Shanshui Technology 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 Jiujiang Shanshui i.e., Jiujiang Shanshui and Jointo Energy go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Jointo Energy
Assuming the 90 days trading horizon Jiujiang Shanshui is expected to generate 8.76 times less return on investment than Jointo Energy. But when comparing it to its historical volatility, Jiujiang Shanshui Technology is 1.08 times less risky than Jointo Energy. It trades about 0.0 of its potential returns per unit of risk. Jointo Energy Investment is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 498.00 in Jointo Energy Investment on September 13, 2024 and sell it today you would earn a total of 48.00 from holding Jointo Energy Investment or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Jointo Energy Investment
Performance |
| Timeline |
| Jiujiang Shanshui |
| Jointo Energy Investment |
Jiujiang Shanshui and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Jointo Energy
The main advantage of trading using opposite Jiujiang Shanshui and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui 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.| Jiujiang Shanshui vs. Guangzhou Ruoyuchen Information | Jiujiang Shanshui vs. ButOne Information Corp | Jiujiang Shanshui vs. Zhuhai Comleader Information | Jiujiang Shanshui vs. Yangmei Chemical Co |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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