Correlation Between Jiangsu Phoenix and Northern United
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By analyzing existing cross correlation between Jiangsu Phoenix Publishing and Northern United Publishing, you can compare the effects of market volatilities on Jiangsu Phoenix and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and Northern United.
Diversification Opportunities for Jiangsu Phoenix and Northern United
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and Northern is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Jiangsu Phoenix i.e., Jiangsu Phoenix and Northern United go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and Northern United
Assuming the 90 days trading horizon Jiangsu Phoenix Publishing is expected to under-perform the Northern United. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Phoenix Publishing is 1.54 times less risky than Northern United. The stock trades about -0.16 of its potential returns per unit of risk. The Northern United Publishing is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 664.00 in Northern United Publishing on August 28, 2024 and sell it today you would earn a total of 27.00 from holding Northern United Publishing or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Phoenix Publishing vs. Northern United Publishing
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
| Northern United Publ |
Jiangsu Phoenix and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and Northern United
The main advantage of trading using opposite Jiangsu Phoenix and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.| Jiangsu Phoenix vs. China State Construction | Jiangsu Phoenix vs. Huafa Industrial Co | Jiangsu Phoenix vs. China International Capital | Jiangsu Phoenix vs. Kweichow Moutai Co |
| Northern United vs. China State Construction | Northern United vs. Huafa Industrial Co | Northern United vs. China International Capital | Northern United vs. Kweichow Moutai 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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