Correlation Between Jiangsu Phoenix and Jiangxi Lianchuang
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By analyzing existing cross correlation between Jiangsu Phoenix Publishing and Jiangxi Lianchuang Opto electronic, you can compare the effects of market volatilities on Jiangsu Phoenix and Jiangxi Lianchuang 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 Jiangxi Lianchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and Jiangxi Lianchuang.
Diversification Opportunities for Jiangsu Phoenix and Jiangxi Lianchuang
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and Jiangxi is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and Jiangxi Lianchuang Opto electr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Lianchuang Opto 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 Jiangxi Lianchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Lianchuang Opto has no effect on the direction of Jiangsu Phoenix i.e., Jiangsu Phoenix and Jiangxi Lianchuang go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and Jiangxi Lianchuang
Assuming the 90 days trading horizon Jiangsu Phoenix Publishing is expected to generate 0.57 times more return on investment than Jiangxi Lianchuang. However, Jiangsu Phoenix Publishing is 1.77 times less risky than Jiangxi Lianchuang. It trades about -0.14 of its potential returns per unit of risk. Jiangxi Lianchuang Opto electronic is currently generating about -0.13 per unit of risk. If you would invest 1,109 in Jiangsu Phoenix Publishing on October 14, 2024 and sell it today you would lose (59.00) from holding Jiangsu Phoenix Publishing or give up 5.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Phoenix Publishing vs. Jiangxi Lianchuang Opto electr
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
| Jiangxi Lianchuang Opto |
Jiangsu Phoenix and Jiangxi Lianchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and Jiangxi Lianchuang
The main advantage of trading using opposite Jiangsu Phoenix and Jiangxi Lianchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix position performs unexpectedly, Jiangxi Lianchuang 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 Jiangxi Lianchuang will offset losses from the drop in Jiangxi Lianchuang's long position.| Jiangsu Phoenix vs. Anji Foodstuff Co | Jiangsu Phoenix vs. Qijing Machinery | Jiangsu Phoenix vs. Allied Machinery Co | Jiangsu Phoenix vs. Anhui Huilong Agricultural |
| Jiangxi Lianchuang vs. Jiangsu Phoenix Publishing | Jiangxi Lianchuang vs. Xiamen Bank Co | Jiangxi Lianchuang vs. Ping An Insurance | Jiangxi Lianchuang vs. Southern PublishingMedia 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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