Correlation Between Jilin Chemical and Jiangsu Phoenix
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By analyzing existing cross correlation between Jilin Chemical Fibre and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on Jilin Chemical and Jiangsu Phoenix 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 Jilin Chemical with a short position of Jiangsu Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Jiangsu Phoenix.
Diversification Opportunities for Jilin Chemical and Jiangsu Phoenix
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jilin and Jiangsu is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Jiangsu Phoenix Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Phoenix Publ and Jilin Chemical 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 Jilin Chemical Fibre are associated (or correlated) with Jiangsu Phoenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Phoenix Publ has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between Jilin Chemical and Jiangsu Phoenix
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the Jiangsu Phoenix. In addition to that, Jilin Chemical is 1.2 times more volatile than Jiangsu Phoenix Publishing. It trades about -0.37 of its total potential returns per unit of risk. Jiangsu Phoenix Publishing is currently generating about -0.13 per unit of volatility. If you would invest 1,117 in Jiangsu Phoenix Publishing on October 17, 2024 and sell it today you would lose (63.00) from holding Jiangsu Phoenix Publishing or give up 5.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. Jiangsu Phoenix Publishing
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Jiangsu Phoenix Publ |
Jilin Chemical and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Jiangsu Phoenix
The main advantage of trading using opposite Jilin Chemical and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Jiangsu Phoenix 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 Jiangsu Phoenix will offset losses from the drop in Jiangsu Phoenix's long position.| Jilin Chemical vs. Qingdao Foods Co | Jilin Chemical vs. Anji Foodstuff Co | Jilin Chemical vs. Quectel Wireless Solutions | Jilin Chemical vs. Muyuan Foodstuff Co |
| Jiangsu Phoenix vs. Xinxiang Chemical Fiber | Jiangsu Phoenix vs. Yangmei Chemical Co | Jiangsu Phoenix vs. Shandong Rike Chemical | Jiangsu Phoenix vs. Jilin Chemical Fibre |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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