Correlation Between China Securities and Fujian Anjoy
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By analyzing existing cross correlation between China Securities 800 and Fujian Anjoy Foods, you can compare the effects of market volatilities on China Securities and Fujian Anjoy 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 China Securities with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Fujian Anjoy.
Diversification Opportunities for China Securities and Fujian Anjoy
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Fujian is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Fujian Anjoy Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Anjoy Foods and China Securities 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 China Securities 800 are associated (or correlated) with Fujian Anjoy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Anjoy Foods has no effect on the direction of China Securities i.e., China Securities and Fujian Anjoy go up and down completely randomly.
Pair Corralation between China Securities and Fujian Anjoy
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.5 times more return on investment than Fujian Anjoy. However, China Securities 800 is 2.01 times less risky than Fujian Anjoy. It trades about 0.05 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.01 per unit of risk. If you would invest 375,415 in China Securities 800 on September 3, 2024 and sell it today you would earn a total of 52,328 from holding China Securities 800 or generate 13.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Fujian Anjoy Foods
Performance |
| Timeline |
China Securities and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Fujian Anjoy Foods
Pair trading matchups for Fujian Anjoy
Pair Trading with China Securities and Fujian Anjoy
The main advantage of trading using opposite China Securities and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Fujian Anjoy 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 Fujian Anjoy will offset losses from the drop in Fujian Anjoy's long position.| China Securities vs. Guilin Seamild Foods | China Securities vs. HaiXin Foods Co | China Securities vs. Zhejiang Publishing Media | China Securities vs. Eastroc Beverage Group |
| Fujian Anjoy vs. Beijing Wantai Biological | Fujian Anjoy vs. Aluminum Corp of | Fujian Anjoy vs. COL Digital Publishing | Fujian Anjoy vs. Shaanxi Meineng Clean |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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