Correlation Between China Petroleum and Jointo Energy
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By analyzing existing cross correlation between China Petroleum Chemical and Jointo Energy Investment, you can compare the effects of market volatilities on China Petroleum 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 China Petroleum with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Jointo Energy.
Diversification Opportunities for China Petroleum and Jointo Energy
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Jointo is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical 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 China Petroleum 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 China Petroleum Chemical 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 China Petroleum i.e., China Petroleum and Jointo Energy go up and down completely randomly.
Pair Corralation between China Petroleum and Jointo Energy
Assuming the 90 days trading horizon China Petroleum is expected to generate 1.81 times less return on investment than Jointo Energy. But when comparing it to its historical volatility, China Petroleum Chemical is 1.8 times less risky than Jointo Energy. It trades about 0.07 of its potential returns per unit of risk. Jointo Energy Investment is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 518.00 in Jointo Energy Investment on September 4, 2024 and sell it today you would earn a total of 10.00 from holding Jointo Energy Investment or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Jointo Energy Investment
Performance |
| Timeline |
| China Petroleum Chemical |
| Jointo Energy Investment |
China Petroleum and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Jointo Energy
The main advantage of trading using opposite China Petroleum and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum 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.| China Petroleum vs. Jointo Energy Investment | China Petroleum vs. Jilin Jlu Communication | China Petroleum vs. Shenzhen Centralcon Investment | China Petroleum vs. Beijing Mainstreets Investment |
| Jointo Energy vs. Industrial and Commercial | Jointo Energy vs. Agricultural Bank of | Jointo Energy vs. China Construction Bank | 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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