Correlation Between Ford and Jiangsu Phoenix
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By analyzing existing cross correlation between Ford Motor and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on Ford 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 Ford with a short position of Jiangsu Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Jiangsu Phoenix.
Diversification Opportunities for Ford and Jiangsu Phoenix
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ford and Jiangsu is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor 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 Ford 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 Ford Motor 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 Ford i.e., Ford and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between Ford and Jiangsu Phoenix
Taking into account the 90-day investment horizon Ford Motor is expected to under-perform the Jiangsu Phoenix. But the stock apears to be less risky and, when comparing its historical volatility, Ford Motor is 1.04 times less risky than Jiangsu Phoenix. The stock trades about -0.08 of its potential returns per unit of risk. The Jiangsu Phoenix Publishing is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,053 in Jiangsu Phoenix Publishing on December 3, 2024 and sell it today you would lose (5.00) from holding Jiangsu Phoenix Publishing or give up 0.47% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.08% |
Values | Daily Returns |
Ford Motor vs. Jiangsu Phoenix Publishing
Performance |
Timeline |
Ford Motor |
Jiangsu Phoenix Publ |
Ford and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ford and Jiangsu Phoenix
The main advantage of trading using opposite Ford and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford 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.The idea behind Ford Motor and Jiangsu Phoenix Publishing 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.Jiangsu Phoenix vs. Nantong Haixing Electronics | Jiangsu Phoenix vs. Jilin Jlu Communication | Jiangsu Phoenix vs. YiDong Electronics Technology | Jiangsu Phoenix vs. Weihai Honglin Electronic |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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