Correlation Between Jiangsu Phoenix and China Longyuan
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By analyzing existing cross correlation between Jiangsu Phoenix Publishing and China Longyuan Power, you can compare the effects of market volatilities on Jiangsu Phoenix and China Longyuan 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 China Longyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and China Longyuan.
Diversification Opportunities for Jiangsu Phoenix and China Longyuan
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and China is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and China Longyuan Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Longyuan Power 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 China Longyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Longyuan Power has no effect on the direction of Jiangsu Phoenix i.e., Jiangsu Phoenix and China Longyuan go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and China Longyuan
Assuming the 90 days trading horizon Jiangsu Phoenix Publishing is expected to generate 0.87 times more return on investment than China Longyuan. However, Jiangsu Phoenix Publishing is 1.14 times less risky than China Longyuan. It trades about 0.05 of its potential returns per unit of risk. China Longyuan Power is currently generating about -0.02 per unit of risk. If you would invest 1,025 in Jiangsu Phoenix Publishing on November 3, 2024 and sell it today you would earn a total of 101.00 from holding Jiangsu Phoenix Publishing or generate 9.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Phoenix Publishing vs. China Longyuan Power
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
| China Longyuan Power |
Jiangsu Phoenix and China Longyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and China Longyuan
The main advantage of trading using opposite Jiangsu Phoenix and China Longyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix position performs unexpectedly, China Longyuan 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 China Longyuan will offset losses from the drop in China Longyuan's long position.| Jiangsu Phoenix vs. Eyebright Medical Technology | Jiangsu Phoenix vs. Maxvision Technology Corp | Jiangsu Phoenix vs. ROPEOK Technology Group | Jiangsu Phoenix vs. Northern United Publishing |
| China Longyuan vs. Sunny Loan Top | China Longyuan vs. Lander Sports Development | China Longyuan vs. Southern PublishingMedia Co | China Longyuan vs. Hengdian Entertainment 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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