Correlation Between Shanghai Rongtai and Jiangsu Phoenix
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By analyzing existing cross correlation between Shanghai Rongtai Health and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on Shanghai Rongtai and Jiangsu Phoenix 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 Shanghai Rongtai with a short position of Jiangsu Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rongtai and Jiangsu Phoenix.
Diversification Opportunities for Shanghai Rongtai and Jiangsu Phoenix
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Jiangsu is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rongtai Health and Jiangsu Phoenix Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Phoenix Publ and Shanghai Rongtai 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 Shanghai Rongtai Health are associated (or correlated) with Jiangsu Phoenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Phoenix Publ has no effect on the direction of Shanghai Rongtai i.e., Shanghai Rongtai and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between Shanghai Rongtai and Jiangsu Phoenix
Assuming the 90 days trading horizon Shanghai Rongtai Health is expected to generate 1.34 times more return on investment than Jiangsu Phoenix. However, Shanghai Rongtai is 1.34 times more volatile than Jiangsu Phoenix Publishing. It trades about 0.18 of its potential returns per unit of risk. Jiangsu Phoenix Publishing is currently generating about 0.13 per unit of risk. 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 |
Shanghai Rongtai Health vs. Jiangsu Phoenix Publishing
Performance |
| Timeline |
| Shanghai Rongtai Health |
| Jiangsu Phoenix Publ |
Shanghai Rongtai and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rongtai and Jiangsu Phoenix
The main advantage of trading using opposite Shanghai Rongtai and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rongtai position performs unexpectedly, Jiangsu Phoenix 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 Jiangsu Phoenix will offset losses from the drop in Jiangsu Phoenix's long position.| Shanghai Rongtai vs. Hongrun Construction Group | Shanghai Rongtai vs. Tengda Construction Group | Shanghai Rongtai vs. Xiangyang Automobile Bearing | Shanghai Rongtai vs. Chongqing Changan Automobile |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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