Correlation Between Jiangsu Phoenix and Shandong Sinoglory
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By analyzing existing cross correlation between Jiangsu Phoenix Publishing and Shandong Sinoglory Health, you can compare the effects of market volatilities on Jiangsu Phoenix and Shandong Sinoglory 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 Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and Shandong Sinoglory.
Diversification Opportunities for Jiangsu Phoenix and Shandong Sinoglory
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and Shandong is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health 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 Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Jiangsu Phoenix i.e., Jiangsu Phoenix and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and Shandong Sinoglory
Assuming the 90 days trading horizon Jiangsu Phoenix is expected to generate 1.91 times less return on investment than Shandong Sinoglory. But when comparing it to its historical volatility, Jiangsu Phoenix Publishing is 1.74 times less risky than Shandong Sinoglory. It trades about 0.13 of its potential returns per unit of risk. Shandong Sinoglory Health is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,168 in Shandong Sinoglory Health on September 1, 2024 and sell it today you would earn a total of 85.00 from holding Shandong Sinoglory Health or generate 7.28% 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. Shandong Sinoglory Health
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
| Shandong Sinoglory Health |
Jiangsu Phoenix and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and Shandong Sinoglory
The main advantage of trading using opposite Jiangsu Phoenix and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory's long position.| Jiangsu Phoenix vs. Cambricon Technologies Corp | Jiangsu Phoenix vs. Loongson Technology Corp | Jiangsu Phoenix vs. Shenzhen Fortune Trend | Jiangsu Phoenix vs. Chongqing Road Bridge |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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