Correlation Between Yangmei Chemical and Jiangsu Phoenix
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By analyzing existing cross correlation between Yangmei Chemical Co and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on Yangmei 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 Yangmei Chemical with a short position of Jiangsu Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yangmei Chemical and Jiangsu Phoenix.
Diversification Opportunities for Yangmei Chemical and Jiangsu Phoenix
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yangmei and Jiangsu is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Yangmei Chemical Co 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 Yangmei 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 Yangmei Chemical Co 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 Yangmei Chemical i.e., Yangmei Chemical and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between Yangmei Chemical and Jiangsu Phoenix
Assuming the 90 days trading horizon Yangmei Chemical Co is expected to under-perform the Jiangsu Phoenix. In addition to that, Yangmei Chemical is 1.31 times more volatile than Jiangsu Phoenix Publishing. It trades about -0.35 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 |
Yangmei Chemical Co vs. Jiangsu Phoenix Publishing
Performance |
| Timeline |
| Yangmei Chemical |
| Jiangsu Phoenix Publ |
Yangmei Chemical and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yangmei Chemical and Jiangsu Phoenix
The main advantage of trading using opposite Yangmei Chemical and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yangmei 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.| Yangmei Chemical vs. Invengo Information Technology | Yangmei Chemical vs. Shenzhen SDG Information | Yangmei Chemical vs. Sharetronic Data Technology | Yangmei Chemical vs. ButOne Information Corp |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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