Correlation Between Jiangsu Phoenix and China Building
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By analyzing existing cross correlation between Jiangsu Phoenix Publishing and China Building Material, you can compare the effects of market volatilities on Jiangsu Phoenix and China Building 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 Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and China Building.
Diversification Opportunities for Jiangsu Phoenix and China Building
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and China is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and China Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Building Material 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 Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Building Material has no effect on the direction of Jiangsu Phoenix i.e., Jiangsu Phoenix and China Building go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and China Building
Assuming the 90 days trading horizon Jiangsu Phoenix Publishing is expected to generate 0.71 times more return on investment than China Building. However, Jiangsu Phoenix Publishing is 1.41 times less risky than China Building. It trades about 0.04 of its potential returns per unit of risk. China Building Material is currently generating about 0.02 per unit of risk. If you would invest 963.00 in Jiangsu Phoenix Publishing on October 29, 2024 and sell it today you would earn a total of 163.00 from holding Jiangsu Phoenix Publishing or generate 16.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Phoenix Publishing vs. China Building Material
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
| China Building Material |
Jiangsu Phoenix and China Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and China Building
The main advantage of trading using opposite Jiangsu Phoenix and China Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix position performs unexpectedly, China Building 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 Building will offset losses from the drop in China Building's long position.| Jiangsu Phoenix vs. DO Home Collection | Jiangsu Phoenix vs. Hunan Mendale Hometextile | Jiangsu Phoenix vs. Liaoning Dingjide Petrochemical | Jiangsu Phoenix vs. Zoy Home Furnishing |
| China Building vs. Tianjin Hi Tech Development | China Building vs. Bank of Communications | China Building vs. Sichuan Jinshi Technology | China Building vs. China Satellite Communications |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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