Correlation Between Shandong Rike and Jiangsu Phoenix
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By analyzing existing cross correlation between Shandong Rike Chemical and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on Shandong Rike 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 Shandong Rike with a short position of Jiangsu Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Rike and Jiangsu Phoenix.
Diversification Opportunities for Shandong Rike and Jiangsu Phoenix
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shandong and Jiangsu is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Rike Chemical 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 Shandong Rike 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 Shandong Rike Chemical 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 Shandong Rike i.e., Shandong Rike and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between Shandong Rike and Jiangsu Phoenix
Assuming the 90 days trading horizon Shandong Rike Chemical is expected to under-perform the Jiangsu Phoenix. In addition to that, Shandong Rike is 1.89 times more volatile than Jiangsu Phoenix Publishing. It trades about -0.09 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Rike Chemical vs. Jiangsu Phoenix Publishing
Performance |
| Timeline |
| Shandong Rike Chemical |
| Jiangsu Phoenix Publ |
Shandong Rike and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Rike and Jiangsu Phoenix
The main advantage of trading using opposite Shandong Rike and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Rike 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.| Shandong Rike vs. Guizhou BroadcastingTV Info | Shandong Rike vs. Sichuan Fulin Transportation | Shandong Rike vs. Hunan TV Broadcast | Shandong Rike vs. Tongyu Communication |
| 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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