Correlation Between Jiangsu Phoenix and China Asset
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By analyzing existing cross correlation between Jiangsu Phoenix Publishing and China Asset Management, you can compare the effects of market volatilities on Jiangsu Phoenix and China Asset 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 Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and China Asset.
Diversification Opportunities for Jiangsu Phoenix and China Asset
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and China is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Jiangsu Phoenix i.e., Jiangsu Phoenix and China Asset go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and China Asset
Assuming the 90 days trading horizon Jiangsu Phoenix Publishing is expected to under-perform the China Asset. In addition to that, Jiangsu Phoenix is 1.78 times more volatile than China Asset Management. It trades about -0.1 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.49 per unit of volatility. If you would invest 343.00 in China Asset Management on October 12, 2024 and sell it today you would earn a total of 34.00 from holding China Asset Management or generate 9.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Phoenix Publishing vs. China Asset Management
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
| China Asset Management |
Jiangsu Phoenix and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and China Asset
The main advantage of trading using opposite Jiangsu Phoenix and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix position performs unexpectedly, China Asset 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 Asset will offset losses from the drop in China Asset's long position.| Jiangsu Phoenix vs. Eastroc Beverage Group | Jiangsu Phoenix vs. Shenyang Blue Silver | Jiangsu Phoenix vs. Fujian Oriental Silver | Jiangsu Phoenix vs. Beijing Yanjing Brewery |
| China Asset vs. Jiangsu Phoenix Publishing | China Asset vs. Huaxia Fund Management | China Asset vs. China Mobile Limited | China Asset vs. Heilongjiang Publishing Media |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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