Correlation Between Jiangsu Phoenix and Gemdale Corp
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By analyzing existing cross correlation between Jiangsu Phoenix Publishing and Gemdale Corp, you can compare the effects of market volatilities on Jiangsu Phoenix and Gemdale Corp 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 Gemdale Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and Gemdale Corp.
Diversification Opportunities for Jiangsu Phoenix and Gemdale Corp
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jiangsu and Gemdale is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and Gemdale Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gemdale Corp 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 Gemdale Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemdale Corp has no effect on the direction of Jiangsu Phoenix i.e., Jiangsu Phoenix and Gemdale Corp go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and Gemdale Corp
Assuming the 90 days trading horizon Jiangsu Phoenix is expected to generate 11.81 times less return on investment than Gemdale Corp. But when comparing it to its historical volatility, Jiangsu Phoenix Publishing is 1.12 times less risky than Gemdale Corp. It trades about 0.02 of its potential returns per unit of risk. Gemdale Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 428.00 in Gemdale Corp on November 7, 2024 and sell it today you would earn a total of 30.00 from holding Gemdale Corp or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Phoenix Publishing vs. Gemdale Corp
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Gemdale Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jiangsu Phoenix and Gemdale Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and Gemdale Corp
The main advantage of trading using opposite Jiangsu Phoenix and Gemdale Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix position performs unexpectedly, Gemdale Corp 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 Gemdale Corp will offset losses from the drop in Gemdale Corp's long position.The idea behind Jiangsu Phoenix Publishing and Gemdale Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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