Correlation Between Caihong Display and Jointo Energy
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By analyzing existing cross correlation between Caihong Display Devices and Jointo Energy Investment, you can compare the effects of market volatilities on Caihong Display 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 Caihong Display with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and Jointo Energy.
Diversification Opportunities for Caihong Display and Jointo Energy
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Caihong and Jointo is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices 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 Caihong Display 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 Caihong Display Devices 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 Caihong Display i.e., Caihong Display and Jointo Energy go up and down completely randomly.
Pair Corralation between Caihong Display and Jointo Energy
Assuming the 90 days trading horizon Caihong Display is expected to generate 1.03 times less return on investment than Jointo Energy. In addition to that, Caihong Display is 1.24 times more volatile than Jointo Energy Investment. It trades about 0.15 of its total potential returns per unit of risk. Jointo Energy Investment is currently generating about 0.19 per unit of volatility. If you would invest 423.00 in Jointo Energy Investment on September 13, 2024 and sell it today you would earn a total of 123.00 from holding Jointo Energy Investment or generate 29.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Caihong Display Devices vs. Jointo Energy Investment
Performance |
Timeline |
Caihong Display Devices |
Jointo Energy Investment |
Caihong Display and Jointo Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Caihong Display and Jointo Energy
The main advantage of trading using opposite Caihong Display and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display 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.Caihong Display vs. Industrial and Commercial | Caihong Display vs. Agricultural Bank of | Caihong Display vs. China Construction Bank | Caihong Display vs. Bank of China |
Jointo Energy vs. Industrial and Commercial | Jointo Energy vs. China Construction Bank | Jointo Energy vs. Agricultural Bank of | Jointo Energy vs. Bank of China |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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