Correlation Between China National and Jointo Energy
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By analyzing existing cross correlation between China National Software and Jointo Energy Investment, you can compare the effects of market volatilities on China National 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 National with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China National and Jointo Energy.
Diversification Opportunities for China National and Jointo Energy
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Jointo is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding China National Software 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 National 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 National Software 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 National i.e., China National and Jointo Energy go up and down completely randomly.
Pair Corralation between China National and Jointo Energy
Assuming the 90 days trading horizon China National Software is expected to generate 1.73 times more return on investment than Jointo Energy. However, China National is 1.73 times more volatile than Jointo Energy Investment. It trades about 0.14 of its potential returns per unit of risk. Jointo Energy Investment is currently generating about -0.1 per unit of risk. If you would invest 3,027 in China National Software on September 3, 2024 and sell it today you would earn a total of 2,519 from holding China National Software or generate 83.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China National Software vs. Jointo Energy Investment
Performance |
| Timeline |
| China National Software |
| Jointo Energy Investment |
China National and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China National and Jointo Energy
The main advantage of trading using opposite China National and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China National 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 National vs. Shandong Hi Speed RoadBridge | China National vs. Huatian Hotel Group | China National vs. Jiangsu Broadcasting Cable | China National vs. Glodon Software Co |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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