Correlation Between ZW Data and Phoenix New

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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 Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

ZW Data Action  vs.  Phoenix New Media

 Performance 
       Timeline  
ZW Data Action 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days ZW Data Action has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in February 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
Phoenix New Media 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Phoenix New Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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.
The idea behind ZW Data Action and Phoenix New Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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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