Correlation Between Wuhan Yangtze and Jiangsu Phoenix
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on Wuhan Yangtze 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 Wuhan Yangtze with a short position of Jiangsu Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Jiangsu Phoenix.
Diversification Opportunities for Wuhan Yangtze and Jiangsu Phoenix
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wuhan and Jiangsu is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication 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 Wuhan Yangtze 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 Wuhan Yangtze Communication 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 Wuhan Yangtze i.e., Wuhan Yangtze and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Jiangsu Phoenix
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 1.99 times more return on investment than Jiangsu Phoenix. However, Wuhan Yangtze is 1.99 times more volatile than Jiangsu Phoenix Publishing. It trades about 0.23 of its potential returns per unit of risk. Jiangsu Phoenix Publishing is currently generating about -0.03 per unit of risk. If you would invest 1,508 in Wuhan Yangtze Communication on August 28, 2024 and sell it today you would earn a total of 1,100 from holding Wuhan Yangtze Communication or generate 72.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Jiangsu Phoenix Publishing
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Jiangsu Phoenix Publ |
Wuhan Yangtze and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Jiangsu Phoenix
The main advantage of trading using opposite Wuhan Yangtze and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze 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.| Wuhan Yangtze vs. New Hope Dairy | Wuhan Yangtze vs. Digital China Information | Wuhan Yangtze vs. Guangzhou Ruoyuchen Information | Wuhan Yangtze vs. Northking Information Technology |
| Jiangsu Phoenix vs. Northern United Publishing | Jiangsu Phoenix vs. Qtone Education Group | Jiangsu Phoenix vs. Jiangsu Yanghe Brewery | Jiangsu Phoenix vs. Southern PublishingMedia Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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