Correlation Between Jiangsu Phoenix and Zangge Holding
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By analyzing existing cross correlation between Jiangsu Phoenix Publishing and Zangge Holding Co, you can compare the effects of market volatilities on Jiangsu Phoenix and Zangge Holding 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 Jiangsu Phoenix with a short position of Zangge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and Zangge Holding.
Diversification Opportunities for Jiangsu Phoenix and Zangge Holding
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jiangsu and Zangge is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and Zangge Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zangge Holding and Jiangsu Phoenix 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 Jiangsu Phoenix Publishing are associated (or correlated) with Zangge Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zangge Holding has no effect on the direction of Jiangsu Phoenix i.e., Jiangsu Phoenix and Zangge Holding go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and Zangge Holding
Assuming the 90 days trading horizon Jiangsu Phoenix Publishing is expected to under-perform the Zangge Holding. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Phoenix Publishing is 1.03 times less risky than Zangge Holding. The stock trades about -0.14 of its potential returns per unit of risk. The Zangge Holding Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,768 in Zangge Holding Co on October 14, 2024 and sell it today you would earn a total of 182.00 from holding Zangge Holding Co or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jiangsu Phoenix Publishing vs. Zangge Holding Co
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
| Zangge Holding |
Jiangsu Phoenix and Zangge Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and Zangge Holding
The main advantage of trading using opposite Jiangsu Phoenix and Zangge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix position performs unexpectedly, Zangge Holding 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 Zangge Holding will offset losses from the drop in Zangge Holding's long position.| Jiangsu Phoenix vs. Shanghai Newtouch Software | Jiangsu Phoenix vs. Zhejiang Yongjin Metal | Jiangsu Phoenix vs. Tongling Nonferrous Metals | Jiangsu Phoenix vs. Jiugui Liquor Co |
| Zangge Holding vs. Zhejiang Publishing Media | Zangge Holding vs. Jiangsu Phoenix Publishing | Zangge Holding vs. Puya Semiconductor Shanghai | Zangge Holding vs. GigaDevice SemiconductorBeiji |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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