Correlation Between Caihong Display and Jiangsu Phoenix
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By analyzing existing cross correlation between Caihong Display Devices and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on Caihong Display 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 Caihong Display with a short position of Jiangsu Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and Jiangsu Phoenix.
Diversification Opportunities for Caihong Display and Jiangsu Phoenix
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Caihong and Jiangsu is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices 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 Caihong Display 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 Caihong Display Devices 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 Caihong Display i.e., Caihong Display and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between Caihong Display and Jiangsu Phoenix
Assuming the 90 days trading horizon Caihong Display Devices is expected to generate 1.02 times more return on investment than Jiangsu Phoenix. However, Caihong Display is 1.02 times more volatile than Jiangsu Phoenix Publishing. It trades about 0.05 of its potential returns per unit of risk. Jiangsu Phoenix Publishing is currently generating about 0.04 per unit of risk. If you would invest 463.00 in Caihong Display Devices on October 12, 2024 and sell it today you would earn a total of 321.00 from holding Caihong Display Devices or generate 69.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. Jiangsu Phoenix Publishing
Performance |
| Timeline |
| Caihong Display Devices |
| Jiangsu Phoenix Publ |
Caihong Display and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and Jiangsu Phoenix
The main advantage of trading using opposite Caihong Display and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display 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.| Caihong Display vs. Hubei Geoway Investment | Caihong Display vs. Zhongrun Resources Investment | Caihong Display vs. Jiangsu Yueda Investment | Caihong Display vs. Shantui Construction Machinery |
| Jiangsu Phoenix vs. Huatian Hotel Group | Jiangsu Phoenix vs. Dr Peng Telecom | Jiangsu Phoenix vs. Caihong Display Devices | Jiangsu Phoenix vs. Guangzhou Dongfang Hotel |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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