Correlation Between Chengtun Mining and Jointo Energy
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By analyzing existing cross correlation between Chengtun Mining Group and Jointo Energy Investment, you can compare the effects of market volatilities on Chengtun Mining 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 Chengtun Mining with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Jointo Energy.
Diversification Opportunities for Chengtun Mining and Jointo Energy
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengtun and Jointo is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group 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 Chengtun Mining 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 Chengtun Mining Group 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 Chengtun Mining i.e., Chengtun Mining and Jointo Energy go up and down completely randomly.
Pair Corralation between Chengtun Mining and Jointo Energy
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 1.18 times more return on investment than Jointo Energy. However, Chengtun Mining is 1.18 times more volatile than Jointo Energy Investment. It trades about 0.02 of its potential returns per unit of risk. Jointo Energy Investment is currently generating about -0.03 per unit of risk. If you would invest 466.00 in Chengtun Mining Group on August 31, 2024 and sell it today you would earn a total of 16.00 from holding Chengtun Mining Group or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Jointo Energy Investment
Performance |
| Timeline |
| Chengtun Mining Group |
| Jointo Energy Investment |
Chengtun Mining and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Jointo Energy
The main advantage of trading using opposite Chengtun Mining and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining 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.| Chengtun Mining vs. Northern United Publishing | Chengtun Mining vs. Dymatic Chemicals | Chengtun Mining vs. StarPower Semiconductor | Chengtun Mining vs. Chinese Universe Publishing |
| Jointo Energy vs. Industrial and Commercial | Jointo Energy vs. Kweichow Moutai Co | Jointo Energy vs. Agricultural Bank of | Jointo Energy vs. China Mobile Limited |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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