Correlation Between Dongxing Sec and Jointo Energy
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By analyzing existing cross correlation between Dongxing Sec Co and Jointo Energy Investment, you can compare the effects of market volatilities on Dongxing Sec 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 Dongxing Sec with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Jointo Energy.
Diversification Opportunities for Dongxing Sec and Jointo Energy
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dongxing and Jointo is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec i.e., Dongxing Sec and Jointo Energy go up and down completely randomly.
Pair Corralation between Dongxing Sec and Jointo Energy
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 1.2 times more return on investment than Jointo Energy. However, Dongxing Sec is 1.2 times more volatile than Jointo Energy Investment. It trades about -0.1 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 1,176 in Dongxing Sec Co on October 29, 2024 and sell it today you would lose (72.00) from holding Dongxing Sec Co or give up 6.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Jointo Energy Investment
Performance |
| Timeline |
| Dongxing Sec |
| Jointo Energy Investment |
Dongxing Sec and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Jointo Energy
The main advantage of trading using opposite Dongxing Sec and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec 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.| Dongxing Sec vs. Nexchip Semiconductor Corp | Dongxing Sec vs. Bohai Leasing Co | Dongxing Sec vs. GigaDevice SemiconductorBeiji | Dongxing Sec vs. Huizhou Speed Wireless |
| Jointo Energy vs. China Life Insurance | Jointo Energy vs. Cinda Securities Co | Jointo Energy vs. Piotech Inc A | Jointo Energy vs. Dongxing Sec 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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