Correlation Between Xiamen Bank and Jointo Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiamen Bank Co and Jointo Energy Investment, you can compare the effects of market volatilities on Xiamen Bank 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 Xiamen Bank with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Jointo Energy.
Diversification Opportunities for Xiamen Bank and Jointo Energy
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Jointo is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank 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 Xiamen Bank 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 Xiamen Bank 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 Xiamen Bank i.e., Xiamen Bank and Jointo Energy go up and down completely randomly.
Pair Corralation between Xiamen Bank and Jointo Energy
Assuming the 90 days trading horizon Xiamen Bank Co is expected to generate 0.78 times more return on investment than Jointo Energy. However, Xiamen Bank Co is 1.29 times less risky than Jointo Energy. It trades about 0.03 of its potential returns per unit of risk. Jointo Energy Investment is currently generating about -0.01 per unit of risk. If you would invest 507.00 in Xiamen Bank Co on October 18, 2024 and sell it today you would earn a total of 26.00 from holding Xiamen Bank Co or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Bank Co vs. Jointo Energy Investment
Performance |
| Timeline |
| Xiamen Bank |
| Jointo Energy Investment |
Xiamen Bank and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Jointo Energy
The main advantage of trading using opposite Xiamen Bank and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank 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.| Xiamen Bank vs. Jiangxi Naipu Mining | Xiamen Bank vs. Anji Foodstuff Co | Xiamen Bank vs. Xinjiang Tianrun Dairy | Xiamen Bank vs. Jiajia Food Group |
| Jointo Energy vs. Xiangyang Automobile Bearing | Jointo Energy vs. Unisplendour Corp | Jointo Energy vs. Xiamen Bank Co | Jointo Energy vs. Chongqing Changan Automobile |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |