Correlation Between Anhui Jianghuai and Jointo Energy
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Jointo Energy Investment, you can compare the effects of market volatilities on Anhui Jianghuai 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 Anhui Jianghuai with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Jointo Energy.
Diversification Opportunities for Anhui Jianghuai and Jointo Energy
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anhui and Jointo is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile 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 Anhui Jianghuai 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 Anhui Jianghuai Automobile 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 Anhui Jianghuai i.e., Anhui Jianghuai and Jointo Energy go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Jointo Energy
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.03 times more return on investment than Jointo Energy. However, Anhui Jianghuai is 1.03 times more volatile than Jointo Energy Investment. It trades about 0.11 of its potential returns per unit of risk. Jointo Energy Investment is currently generating about -0.24 per unit of risk. If you would invest 3,866 in Anhui Jianghuai Automobile on October 25, 2024 and sell it today you would earn a total of 233.00 from holding Anhui Jianghuai Automobile or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Jointo Energy Investment
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Jointo Energy Investment |
Anhui Jianghuai and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Jointo Energy
The main advantage of trading using opposite Anhui Jianghuai and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai 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.| Anhui Jianghuai vs. PetroChina Co Ltd | Anhui Jianghuai vs. Gansu Jiu Steel | Anhui Jianghuai vs. Ming Yang Smart | Anhui Jianghuai vs. Aba Chemicals Corp |
| Jointo Energy vs. Changchun BCHT Biotechnology | Jointo Energy vs. Pengxin International Mining | Jointo Energy vs. Shenyang Blue Silver | Jointo Energy vs. Western Mining Co |
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