Correlation Between Jointo Energy and HMTNew Technical
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By analyzing existing cross correlation between Jointo Energy Investment and HMTNew Technical, you can compare the effects of market volatilities on Jointo Energy and HMTNew Technical 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 Jointo Energy with a short position of HMTNew Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and HMTNew Technical.
Diversification Opportunities for Jointo Energy and HMTNew Technical
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jointo and HMTNew is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and HMTNew Technical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMTNew Technical and Jointo Energy 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 Jointo Energy Investment are associated (or correlated) with HMTNew Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMTNew Technical has no effect on the direction of Jointo Energy i.e., Jointo Energy and HMTNew Technical go up and down completely randomly.
Pair Corralation between Jointo Energy and HMTNew Technical
Assuming the 90 days trading horizon Jointo Energy is expected to generate 1.91 times less return on investment than HMTNew Technical. But when comparing it to its historical volatility, Jointo Energy Investment is 2.0 times less risky than HMTNew Technical. It trades about 0.14 of its potential returns per unit of risk. HMTNew Technical is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,273 in HMTNew Technical on September 7, 2024 and sell it today you would earn a total of 836.00 from holding HMTNew Technical or generate 36.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jointo Energy Investment vs. HMTNew Technical
Performance |
Timeline |
Jointo Energy Investment |
HMTNew Technical |
Jointo Energy and HMTNew Technical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jointo Energy and HMTNew Technical
The main advantage of trading using opposite Jointo Energy and HMTNew Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, HMTNew Technical 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 HMTNew Technical will offset losses from the drop in HMTNew Technical's long position.Jointo Energy vs. New China Life | Jointo Energy vs. Bosera ChiNext ETF | Jointo Energy vs. Gansu Jiu Steel | Jointo Energy vs. Ming Yang Smart |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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