Correlation Between Jiangsu Phoenix and Hubei Geoway
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By analyzing existing cross correlation between Jiangsu Phoenix Publishing and Hubei Geoway Investment, you can compare the effects of market volatilities on Jiangsu Phoenix and Hubei Geoway 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 Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and Hubei Geoway.
Diversification Opportunities for Jiangsu Phoenix and Hubei Geoway
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangsu and Hubei is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment 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 Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Jiangsu Phoenix i.e., Jiangsu Phoenix and Hubei Geoway go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and Hubei Geoway
Assuming the 90 days trading horizon Jiangsu Phoenix is expected to generate 2.18 times less return on investment than Hubei Geoway. But when comparing it to its historical volatility, Jiangsu Phoenix Publishing is 1.84 times less risky than Hubei Geoway. It trades about 0.23 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 147.00 in Hubei Geoway Investment on September 24, 2024 and sell it today you would earn a total of 28.00 from holding Hubei Geoway Investment or generate 19.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Phoenix Publishing vs. Hubei Geoway Investment
Performance |
Timeline |
Jiangsu Phoenix Publ |
Hubei Geoway Investment |
Jiangsu Phoenix and Hubei Geoway Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Phoenix and Hubei Geoway
The main advantage of trading using opposite Jiangsu Phoenix and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway's long position.Jiangsu Phoenix vs. Beijing Bashi Media | Jiangsu Phoenix vs. Thinkingdom Media Group | Jiangsu Phoenix vs. Wasu Media Holding | Jiangsu Phoenix vs. Dook Media Group |
Hubei Geoway vs. Zijin Mining Group | Hubei Geoway vs. Wanhua Chemical Group | Hubei Geoway vs. Baoshan Iron Steel | Hubei Geoway vs. Shandong Gold Mining |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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