Correlation Between ZW Data and Phoenix New
Can any of the company-specific risk be diversified away by investing in both ZW Data and Phoenix New at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ZW Data and Phoenix New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZW Data Action and Phoenix New Media, you can compare the effects of market volatilities on ZW Data and Phoenix New 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 ZW Data with a short position of Phoenix New. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZW Data and Phoenix New.
Diversification Opportunities for ZW Data and Phoenix New
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CNET and Phoenix is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding ZW Data Action and Phoenix New Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix New Media and ZW Data 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 ZW Data Action are associated (or correlated) with Phoenix New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix New Media has no effect on the direction of ZW Data i.e., ZW Data and Phoenix New go up and down completely randomly.
Pair Corralation between ZW Data and Phoenix New
Given the investment horizon of 90 days ZW Data Action is expected to generate 1.04 times more return on investment than Phoenix New. However, ZW Data is 1.04 times more volatile than Phoenix New Media. It trades about -0.04 of its potential returns per unit of risk. Phoenix New Media is currently generating about -0.09 per unit of risk. If you would invest 130.00 in ZW Data Action on October 14, 2025 and sell it today you would lose (6.00) from holding ZW Data Action or give up 4.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZW Data Action vs. Phoenix New Media
Performance |
| Timeline |
| ZW Data Action |
| Phoenix New Media |
ZW Data and Phoenix New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZW Data and Phoenix New
The main advantage of trading using opposite ZW Data and Phoenix New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZW Data position performs unexpectedly, Phoenix New 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 Phoenix New will offset losses from the drop in Phoenix New's long position.| ZW Data vs. Baosheng Media Group | ZW Data vs. Cheetah Mobile | ZW Data vs. Onfolio Holdings | ZW Data vs. Star Fashion Culture |
| Phoenix New vs. Cheetah Mobile | Phoenix New vs. Strive Asset Management | Phoenix New vs. Thryv Holdings | Phoenix New vs. LightInTheBox Holding 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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