Correlation Between Xinhu Zhongbao and Jointo Energy
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By analyzing existing cross correlation between Xinhu Zhongbao Co and Jointo Energy Investment, you can compare the effects of market volatilities on Xinhu Zhongbao 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 Xinhu Zhongbao with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhu Zhongbao and Jointo Energy.
Diversification Opportunities for Xinhu Zhongbao and Jointo Energy
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinhu and Jointo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Xinhu Zhongbao Co 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 Xinhu Zhongbao 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 Xinhu Zhongbao Co 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 Xinhu Zhongbao i.e., Xinhu Zhongbao and Jointo Energy go up and down completely randomly.
Pair Corralation between Xinhu Zhongbao and Jointo Energy
Assuming the 90 days trading horizon Xinhu Zhongbao Co is expected to generate 1.18 times more return on investment than Jointo Energy. However, Xinhu Zhongbao is 1.18 times more volatile than Jointo Energy Investment. It trades about 0.06 of its potential returns per unit of risk. Jointo Energy Investment is currently generating about 0.02 per unit of risk. If you would invest 239.00 in Xinhu Zhongbao Co on September 14, 2024 and sell it today you would earn a total of 93.00 from holding Xinhu Zhongbao Co or generate 38.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhu Zhongbao Co vs. Jointo Energy Investment
Performance |
| Timeline |
| Xinhu Zhongbao |
| Jointo Energy Investment |
Xinhu Zhongbao and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhu Zhongbao and Jointo Energy
The main advantage of trading using opposite Xinhu Zhongbao and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhu Zhongbao 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.| Xinhu Zhongbao vs. Jointo Energy Investment | Xinhu Zhongbao vs. China Publishing Media | Xinhu Zhongbao vs. Southern PublishingMedia Co | Xinhu Zhongbao vs. Xinhua Winshare Publishing |
| Jointo Energy vs. Changjiang Jinggong Steel | Jointo Energy vs. Guangdong Qunxing Toys | Jointo Energy vs. Hubei Geoway Investment | Jointo Energy vs. Shenzhen MYS Environmental |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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