Correlation Between Jiangsu Phoenix and Sinocat Environmental
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By analyzing existing cross correlation between Jiangsu Phoenix Publishing and Sinocat Environmental Technology, you can compare the effects of market volatilities on Jiangsu Phoenix and Sinocat Environmental 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 Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and Sinocat Environmental.
Diversification Opportunities for Jiangsu Phoenix and Sinocat Environmental
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiangsu and Sinocat is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental 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 Sinocat Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocat Environmental has no effect on the direction of Jiangsu Phoenix i.e., Jiangsu Phoenix and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and Sinocat Environmental
Assuming the 90 days trading horizon Jiangsu Phoenix Publishing is expected to generate 0.37 times more return on investment than Sinocat Environmental. However, Jiangsu Phoenix Publishing is 2.71 times less risky than Sinocat Environmental. It trades about 0.21 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about 0.02 per unit of risk. If you would invest 1,037 in Jiangsu Phoenix Publishing on September 29, 2024 and sell it today you would earn a total of 84.00 from holding Jiangsu Phoenix Publishing or generate 8.1% 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. Sinocat Environmental Technolo
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
| Sinocat Environmental |
Jiangsu Phoenix and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and Sinocat Environmental
The main advantage of trading using opposite Jiangsu Phoenix and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix position performs unexpectedly, Sinocat Environmental 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 Sinocat Environmental will offset losses from the drop in Sinocat Environmental's long position.| Jiangsu Phoenix vs. Anhui Tongguan Copper | Jiangsu Phoenix vs. Beijing HuaYuanYiTong Thermal | Jiangsu Phoenix vs. Air China Ltd | Jiangsu Phoenix vs. Dalian Thermal Power |
| Sinocat Environmental vs. China Life Insurance | Sinocat Environmental vs. Cinda Securities Co | Sinocat Environmental vs. Piotech Inc A | Sinocat Environmental vs. Dongxing Sec 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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