Correlation Between Jiangsu Phoenix and Shandong Mining
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By analyzing existing cross correlation between Jiangsu Phoenix Publishing and Shandong Mining Machinery, you can compare the effects of market volatilities on Jiangsu Phoenix and Shandong Mining 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 Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and Shandong Mining.
Diversification Opportunities for Jiangsu Phoenix and Shandong Mining
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jiangsu and Shandong is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and Shandong Mining Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Mining Machinery 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 Shandong Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Mining Machinery has no effect on the direction of Jiangsu Phoenix i.e., Jiangsu Phoenix and Shandong Mining go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and Shandong Mining
Assuming the 90 days trading horizon Jiangsu Phoenix is expected to generate 7.8 times less return on investment than Shandong Mining. But when comparing it to its historical volatility, Jiangsu Phoenix Publishing is 1.51 times less risky than Shandong Mining. It trades about 0.01 of its potential returns per unit of risk. Shandong Mining Machinery is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 265.00 in Shandong Mining Machinery on September 4, 2024 and sell it today you would earn a total of 131.00 from holding Shandong Mining Machinery or generate 49.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Jiangsu Phoenix Publishing vs. Shandong Mining Machinery
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
| Shandong Mining Machinery |
Jiangsu Phoenix and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and Shandong Mining
The main advantage of trading using opposite Jiangsu Phoenix and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix position performs unexpectedly, Shandong Mining 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 Shandong Mining will offset losses from the drop in Shandong Mining's long position.| Jiangsu Phoenix vs. Ming Yang Smart | Jiangsu Phoenix vs. 159681 | Jiangsu Phoenix vs. 159005 | Jiangsu Phoenix vs. 516220 |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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