Correlation Between Jiangsu Phoenix and Hubei Yingtong
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By analyzing existing cross correlation between Jiangsu Phoenix Publishing and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on Jiangsu Phoenix and Hubei Yingtong 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 Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and Hubei Yingtong.
Diversification Opportunities for Jiangsu Phoenix and Hubei Yingtong
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiangsu and Hubei is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec 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 Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of Jiangsu Phoenix i.e., Jiangsu Phoenix and Hubei Yingtong go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and Hubei Yingtong
Assuming the 90 days trading horizon Jiangsu Phoenix Publishing is expected to under-perform the Hubei Yingtong. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Phoenix Publishing is 3.7 times less risky than Hubei Yingtong. The stock trades about -0.12 of its potential returns per unit of risk. The Hubei Yingtong Telecommunication is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,337 in Hubei Yingtong Telecommunication on October 24, 2024 and sell it today you would earn a total of 374.00 from holding Hubei Yingtong Telecommunication or generate 27.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Phoenix Publishing vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
| Hubei Yingtong Telec |
Jiangsu Phoenix and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and Hubei Yingtong
The main advantage of trading using opposite Jiangsu Phoenix and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong's long position.| Jiangsu Phoenix vs. Industrial and Commercial | Jiangsu Phoenix vs. Agricultural Bank of | Jiangsu Phoenix vs. China Construction Bank | Jiangsu Phoenix vs. Bank of China |
| Hubei Yingtong vs. Kweichow Moutai Co | Hubei Yingtong vs. NAURA Technology Group | Hubei Yingtong vs. APT Medical | Hubei Yingtong vs. BYD Co Ltd |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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