Correlation Between Gansu Huangtai and Fujian Anjoy
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Fujian Anjoy Foods, you can compare the effects of market volatilities on Gansu Huangtai 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 Gansu Huangtai with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Fujian Anjoy.
Diversification Opportunities for Gansu Huangtai and Fujian Anjoy
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gansu and Fujian is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing 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 Gansu Huangtai 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 Gansu Huangtai Wine marketing 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 Gansu Huangtai i.e., Gansu Huangtai and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Fujian Anjoy
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 3.5 times more return on investment than Fujian Anjoy. However, Gansu Huangtai is 3.5 times more volatile than Fujian Anjoy Foods. It trades about -0.01 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.33 per unit of risk. If you would invest 1,739 in Gansu Huangtai Wine marketing on October 18, 2024 and sell it today you would lose (68.00) from holding Gansu Huangtai Wine marketing or give up 3.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Fujian Anjoy Foods |
Gansu Huangtai and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Fujian Anjoy
The main advantage of trading using opposite Gansu Huangtai and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai 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.| Gansu Huangtai vs. Runjian Communication Co | Gansu Huangtai vs. Dongfeng Automobile Co | Gansu Huangtai vs. Suzhou Mingzhi Technology | Gansu Huangtai vs. Songz Automobile Air |
| Fujian Anjoy vs. Yangmei Chemical Co | Fujian Anjoy vs. Tongyu Communication | Fujian Anjoy vs. Ningxia Younglight Chemicals | Fujian Anjoy vs. Liaoning Dingjide Petrochemical |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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