Correlation Between Jiangsu Phoenix and Shanghai Rongtai
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By analyzing existing cross correlation between Jiangsu Phoenix Publishing and Shanghai Rongtai Health, you can compare the effects of market volatilities on Jiangsu Phoenix and Shanghai Rongtai 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 Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and Shanghai Rongtai.
Diversification Opportunities for Jiangsu Phoenix and Shanghai Rongtai
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and Shanghai is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai 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 Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Jiangsu Phoenix i.e., Jiangsu Phoenix and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and Shanghai Rongtai
Assuming the 90 days trading horizon Jiangsu Phoenix is expected to generate 1.78 times less return on investment than Shanghai Rongtai. But when comparing it to its historical volatility, Jiangsu Phoenix Publishing is 1.34 times less risky than Shanghai Rongtai. It trades about 0.13 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,389 in Shanghai Rongtai Health on September 1, 2024 and sell it today you would earn a total of 97.00 from holding Shanghai Rongtai Health or generate 6.98% 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. Shanghai Rongtai Health
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
| Shanghai Rongtai Health |
Jiangsu Phoenix and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and Shanghai Rongtai
The main advantage of trading using opposite Jiangsu Phoenix and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai'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 |
| Shanghai Rongtai vs. Hongrun Construction Group | Shanghai Rongtai vs. Tengda Construction Group | Shanghai Rongtai vs. Xiangyang Automobile Bearing | Shanghai Rongtai vs. Chongqing Changan Automobile |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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