Correlation Between Kangxin New and Jointo Energy
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By analyzing existing cross correlation between Kangxin New Materials and Jointo Energy Investment, you can compare the effects of market volatilities on Kangxin New 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 Kangxin New with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangxin New and Jointo Energy.
Diversification Opportunities for Kangxin New and Jointo Energy
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangxin and Jointo is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kangxin New Materials 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 Kangxin New 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 Kangxin New Materials 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 Kangxin New i.e., Kangxin New and Jointo Energy go up and down completely randomly.
Pair Corralation between Kangxin New and Jointo Energy
Assuming the 90 days trading horizon Kangxin New Materials is expected to generate 1.56 times more return on investment than Jointo Energy. However, Kangxin New is 1.56 times more volatile than Jointo Energy Investment. It trades about 0.26 of its potential returns per unit of risk. Jointo Energy Investment is currently generating about 0.19 per unit of risk. If you would invest 145.00 in Kangxin New Materials on September 20, 2024 and sell it today you would earn a total of 110.00 from holding Kangxin New Materials or generate 75.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Kangxin New Materials vs. Jointo Energy Investment
Performance |
Timeline |
Kangxin New Materials |
Jointo Energy Investment |
Kangxin New and Jointo Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kangxin New and Jointo Energy
The main advantage of trading using opposite Kangxin New and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangxin New 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.Kangxin New vs. Zijin Mining Group | Kangxin New vs. Wanhua Chemical Group | Kangxin New vs. Baoshan Iron Steel | Kangxin New vs. Shandong Gold Mining |
Jointo Energy vs. Changjiang Jinggong Steel | Jointo Energy vs. Shandong Polymer Biochemicals | Jointo Energy vs. Aofu Environmental Technology | Jointo Energy vs. Gansu Jiu Steel |
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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