Correlation Between Dalian Thermal and Jiangsu Phoenix
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By analyzing existing cross correlation between Dalian Thermal Power and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on Dalian Thermal 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 Dalian Thermal with a short position of Jiangsu Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalian Thermal and Jiangsu Phoenix.
Diversification Opportunities for Dalian Thermal and Jiangsu Phoenix
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dalian and Jiangsu is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Dalian Thermal Power 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 Dalian Thermal 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 Dalian Thermal Power 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 Dalian Thermal i.e., Dalian Thermal and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between Dalian Thermal and Jiangsu Phoenix
Assuming the 90 days trading horizon Dalian Thermal Power is expected to generate 1.49 times more return on investment than Jiangsu Phoenix. However, Dalian Thermal is 1.49 times more volatile than Jiangsu Phoenix Publishing. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Phoenix Publishing is currently generating about 0.05 per unit of risk. If you would invest 525.00 in Dalian Thermal Power on September 30, 2024 and sell it today you would earn a total of 202.00 from holding Dalian Thermal Power or generate 38.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalian Thermal Power vs. Jiangsu Phoenix Publishing
Performance |
| Timeline |
| Dalian Thermal Power |
| Jiangsu Phoenix Publ |
Dalian Thermal and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalian Thermal and Jiangsu Phoenix
The main advantage of trading using opposite Dalian Thermal and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalian Thermal 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.| Dalian Thermal vs. Industrial and Commercial | Dalian Thermal vs. Agricultural Bank of | Dalian Thermal vs. China Construction Bank | Dalian Thermal vs. Bank of China |
| Jiangsu Phoenix vs. Heilongjiang Transport Development | Jiangsu Phoenix vs. Shanghai Rongtai Health | Jiangsu Phoenix vs. Yunnan Jianzhijia Health Chain | Jiangsu Phoenix vs. Sanbo Hospital Management |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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