Correlation Between Phoenix New and ZW Data
Can any of the company-specific risk be diversified away by investing in both Phoenix New and ZW Data 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 Phoenix New and ZW Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phoenix New Media and ZW Data Action, you can compare the effects of market volatilities on Phoenix New and ZW Data 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 Phoenix New with a short position of ZW Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix New and ZW Data.
Diversification Opportunities for Phoenix New and ZW Data
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Phoenix and CNET is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix New Media and ZW Data Action in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZW Data Action and Phoenix New 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 Phoenix New Media are associated (or correlated) with ZW Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZW Data Action has no effect on the direction of Phoenix New i.e., Phoenix New and ZW Data go up and down completely randomly.
Pair Corralation between Phoenix New and ZW Data
Given the investment horizon of 90 days Phoenix New Media is expected to generate 0.55 times more return on investment than ZW Data. However, Phoenix New Media is 1.82 times less risky than ZW Data. It trades about -0.08 of its potential returns per unit of risk. ZW Data Action is currently generating about -0.12 per unit of risk. If you would invest 232.00 in Phoenix New Media on October 20, 2025 and sell it today you would lose (40.00) from holding Phoenix New Media or give up 17.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phoenix New Media vs. ZW Data Action
Performance |
| Timeline |
| Phoenix New Media |
| ZW Data Action |
Phoenix New and ZW Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix New and ZW Data
The main advantage of trading using opposite Phoenix New and ZW Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix New position performs unexpectedly, ZW Data 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 ZW Data will offset losses from the drop in ZW Data's long position.| Phoenix New vs. Cheetah Mobile | Phoenix New vs. Strive Asset Management | Phoenix New vs. Thryv Holdings | Phoenix New vs. LightInTheBox Holding Co |
| ZW Data vs. Baosheng Media Group | ZW Data vs. Cheetah Mobile | ZW Data vs. Onfolio Holdings | ZW Data vs. Star Fashion Culture |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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