Correlation Between Shanghai Metersbonwe and Jointo Energy
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Jointo Energy Investment, you can compare the effects of market volatilities on Shanghai Metersbonwe 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 Shanghai Metersbonwe with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Jointo Energy.
Diversification Opportunities for Shanghai Metersbonwe and Jointo Energy
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and Jointo is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc 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 Shanghai Metersbonwe 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 Shanghai Metersbonwe FashionAccessories 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 Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Jointo Energy go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Jointo Energy
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 1.77 times more return on investment than Jointo Energy. However, Shanghai Metersbonwe is 1.77 times more volatile than Jointo Energy Investment. It trades about 0.03 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 232.00 in Shanghai Metersbonwe FashionAccessories on October 20, 2024 and sell it today you would lose (1.00) from holding Shanghai Metersbonwe FashionAccessories or give up 0.43% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Metersbonwe FashionAc vs. Jointo Energy Investment
Performance |
Timeline |
Shanghai Metersbonwe |
Jointo Energy Investment |
Shanghai Metersbonwe and Jointo Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Metersbonwe and Jointo Energy
The main advantage of trading using opposite Shanghai Metersbonwe and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe 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.Shanghai Metersbonwe vs. China Everbright Bank | Shanghai Metersbonwe vs. CGN Nuclear Technology | Shanghai Metersbonwe vs. Kuangda Technology Group | Shanghai Metersbonwe vs. Jiujiang Shanshui Technology |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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