Correlation Between Jiangsu Phoenix and Hunan Fangsheng
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By analyzing existing cross correlation between Jiangsu Phoenix Publishing and Hunan Fangsheng Pharm, you can compare the effects of market volatilities on Jiangsu Phoenix and Hunan Fangsheng 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 Hunan Fangsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and Hunan Fangsheng.
Diversification Opportunities for Jiangsu Phoenix and Hunan Fangsheng
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiangsu and Hunan is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and Hunan Fangsheng Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Fangsheng Pharm 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 Hunan Fangsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Fangsheng Pharm has no effect on the direction of Jiangsu Phoenix i.e., Jiangsu Phoenix and Hunan Fangsheng go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and Hunan Fangsheng
Assuming the 90 days trading horizon Jiangsu Phoenix Publishing is expected to generate 0.93 times more return on investment than Hunan Fangsheng. However, Jiangsu Phoenix Publishing is 1.08 times less risky than Hunan Fangsheng. It trades about 0.15 of its potential returns per unit of risk. Hunan Fangsheng Pharm is currently generating about -0.17 per unit of risk. If you would invest 1,063 in Jiangsu Phoenix Publishing on September 12, 2024 and sell it today you would earn a total of 70.00 from holding Jiangsu Phoenix Publishing or generate 6.59% 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. Hunan Fangsheng Pharm
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
| Hunan Fangsheng Pharm |
Jiangsu Phoenix and Hunan Fangsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and Hunan Fangsheng
The main advantage of trading using opposite Jiangsu Phoenix and Hunan Fangsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix position performs unexpectedly, Hunan Fangsheng 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 Hunan Fangsheng will offset losses from the drop in Hunan Fangsheng's long position.| Jiangsu Phoenix vs. Kweichow Moutai Co | Jiangsu Phoenix vs. Shenzhen Mindray Bio Medical | Jiangsu Phoenix vs. G bits Network Technology | Jiangsu Phoenix vs. Beijing Roborock Technology |
| Hunan Fangsheng vs. Chinese Universe Publishing | Hunan Fangsheng vs. Ping An Insurance | Hunan Fangsheng vs. Suzhou Douson Drilling | Hunan Fangsheng vs. Jiangsu Phoenix Publishing |
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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