Correlation Between Jiangsu Phoenix and Anhui Jianghuai
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By analyzing existing cross correlation between Jiangsu Phoenix Publishing and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Jiangsu Phoenix and Anhui Jianghuai 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 Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and Anhui Jianghuai.
Diversification Opportunities for Jiangsu Phoenix and Anhui Jianghuai
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jiangsu and Anhui is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and Anhui Jianghuai Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jianghuai Auto 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 Anhui Jianghuai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jianghuai Auto has no effect on the direction of Jiangsu Phoenix i.e., Jiangsu Phoenix and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and Anhui Jianghuai
Assuming the 90 days trading horizon Jiangsu Phoenix is expected to generate 2.46 times less return on investment than Anhui Jianghuai. But when comparing it to its historical volatility, Jiangsu Phoenix Publishing is 1.39 times less risky than Anhui Jianghuai. It trades about 0.04 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,382 in Anhui Jianghuai Automobile on September 3, 2024 and sell it today you would earn a total of 2,129 from holding Anhui Jianghuai Automobile or generate 154.05% 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. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
| Anhui Jianghuai Auto |
Jiangsu Phoenix and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and Anhui Jianghuai
The main advantage of trading using opposite Jiangsu Phoenix and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix position performs unexpectedly, Anhui Jianghuai 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 Anhui Jianghuai will offset losses from the drop in Anhui Jianghuai's long position.| Jiangsu Phoenix vs. China Railway Materials | Jiangsu Phoenix vs. Eastroc Beverage Group | Jiangsu Phoenix vs. Jiangnan Mould Plastic | Jiangsu Phoenix vs. Ligao Foods CoLtd |
| Anhui Jianghuai vs. PetroChina Co Ltd | Anhui Jianghuai vs. China Mobile Limited | Anhui Jianghuai vs. Industrial and Commercial | Anhui Jianghuai vs. China Life Insurance |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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