Correlation Between Anhui Tongguan and Jiangsu Phoenix
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By analyzing existing cross correlation between Anhui Tongguan Copper and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on Anhui Tongguan 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 Anhui Tongguan with a short position of Jiangsu Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Tongguan and Jiangsu Phoenix.
Diversification Opportunities for Anhui Tongguan and Jiangsu Phoenix
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anhui and Jiangsu is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Tongguan Copper 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 Anhui Tongguan 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 Anhui Tongguan Copper 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 Anhui Tongguan i.e., Anhui Tongguan and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between Anhui Tongguan and Jiangsu Phoenix
Assuming the 90 days trading horizon Anhui Tongguan Copper is expected to generate 1.94 times more return on investment than Jiangsu Phoenix. However, Anhui Tongguan is 1.94 times more volatile than Jiangsu Phoenix Publishing. It trades about 0.06 of its potential returns per unit of risk. Jiangsu Phoenix Publishing is currently generating about -0.12 per unit of risk. If you would invest 1,067 in Anhui Tongguan Copper on October 18, 2024 and sell it today you would earn a total of 33.00 from holding Anhui Tongguan Copper or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Tongguan Copper vs. Jiangsu Phoenix Publishing
Performance |
| Timeline |
| Anhui Tongguan Copper |
| Jiangsu Phoenix Publ |
Anhui Tongguan and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Tongguan and Jiangsu Phoenix
The main advantage of trading using opposite Anhui Tongguan and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Tongguan 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.| Anhui Tongguan vs. Shanghai Ziyan Foods | Anhui Tongguan vs. Chongqing Sulian Plastic | Anhui Tongguan vs. Kangxin New Materials | Anhui Tongguan vs. Guilin Seamild Foods |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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