Correlation Between Beijing Bashi and Jiangsu Phoenix
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By analyzing existing cross correlation between Beijing Bashi Media and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on Beijing Bashi 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 Beijing Bashi with a short position of Jiangsu Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bashi and Jiangsu Phoenix.
Diversification Opportunities for Beijing Bashi and Jiangsu Phoenix
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Jiangsu is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bashi Media 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 Beijing Bashi 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 Beijing Bashi Media 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 Beijing Bashi i.e., Beijing Bashi and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between Beijing Bashi and Jiangsu Phoenix
Assuming the 90 days trading horizon Beijing Bashi Media is expected to generate 1.87 times more return on investment than Jiangsu Phoenix. However, Beijing Bashi is 1.87 times more volatile than Jiangsu Phoenix Publishing. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Phoenix Publishing is currently generating about 0.05 per unit of risk. If you would invest 442.00 in Beijing Bashi Media on September 25, 2024 and sell it today you would earn a total of 48.00 from holding Beijing Bashi Media or generate 10.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Bashi Media vs. Jiangsu Phoenix Publishing
Performance |
Timeline |
Beijing Bashi Media |
Jiangsu Phoenix Publ |
Beijing Bashi and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Bashi and Jiangsu Phoenix
The main advantage of trading using opposite Beijing Bashi and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bashi 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.Beijing Bashi vs. Kweichow Moutai Co | Beijing Bashi vs. NAURA Technology Group | Beijing Bashi vs. Zhejiang Orient Gene | Beijing Bashi vs. APT Medical |
Jiangsu Phoenix vs. PetroChina Co Ltd | Jiangsu Phoenix vs. China Mobile Limited | Jiangsu Phoenix vs. CNOOC Limited | Jiangsu Phoenix vs. Ping An Insurance |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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