Correlation Between Pengxin International and Jointo Energy
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By analyzing existing cross correlation between Pengxin International Mining and Jointo Energy Investment, you can compare the effects of market volatilities on Pengxin International 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 Pengxin International with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Jointo Energy.
Diversification Opportunities for Pengxin International and Jointo Energy
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pengxin and Jointo is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining 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 Pengxin International 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 Pengxin International Mining 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 Pengxin International i.e., Pengxin International and Jointo Energy go up and down completely randomly.
Pair Corralation between Pengxin International and Jointo Energy
Assuming the 90 days trading horizon Pengxin International is expected to generate 1.25 times less return on investment than Jointo Energy. In addition to that, Pengxin International is 1.8 times more volatile than Jointo Energy Investment. It trades about 0.04 of its total potential returns per unit of risk. Jointo Energy Investment is currently generating about 0.08 per unit of volatility. If you would invest 514.00 in Jointo Energy Investment on November 4, 2024 and sell it today you would earn a total of 12.00 from holding Jointo Energy Investment or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Jointo Energy Investment
Performance |
| Timeline |
| Pengxin International |
| Jointo Energy Investment |
Pengxin International and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Jointo Energy
The main advantage of trading using opposite Pengxin International and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International 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.| Pengxin International vs. China Everbright Bank | Pengxin International vs. Shenzhen Bioeasy Biotechnology | Pengxin International vs. Hua Xia Bank | Pengxin International vs. Jiangsu GDK Biotechnology |
| Jointo Energy vs. CICT Mobile Communication | Jointo Energy vs. Xinxiang Chemical Fiber | Jointo Energy vs. Maoming Petro Chemical Shihua | Jointo Energy vs. Daoming OpticsChemical Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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