Correlation Between Beijing Bewinner and Fujian Anjoy
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By analyzing existing cross correlation between Beijing Bewinner Communications and Fujian Anjoy Foods, you can compare the effects of market volatilities on Beijing Bewinner 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 Beijing Bewinner with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and Fujian Anjoy.
Diversification Opportunities for Beijing Bewinner and Fujian Anjoy
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Fujian is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication 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 Beijing Bewinner 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 Beijing Bewinner Communications 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 Beijing Bewinner i.e., Beijing Bewinner and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Beijing Bewinner and Fujian Anjoy
Assuming the 90 days trading horizon Beijing Bewinner Communications is expected to generate 1.35 times more return on investment than Fujian Anjoy. However, Beijing Bewinner is 1.35 times more volatile than Fujian Anjoy Foods. It trades about 0.09 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.17 per unit of risk. If you would invest 630.00 in Beijing Bewinner Communications on September 12, 2024 and sell it today you would earn a total of 31.00 from holding Beijing Bewinner Communications or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Bewinner Communication vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Beijing Bewinner Com |
| Fujian Anjoy Foods |
Beijing Bewinner and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and Fujian Anjoy
The main advantage of trading using opposite Beijing Bewinner and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner 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.| Beijing Bewinner vs. Focus Media Information | Beijing Bewinner vs. Guocheng Mining Co | Beijing Bewinner vs. JiShi Media Co | Beijing Bewinner vs. Ye Chiu Metal |
| Fujian Anjoy vs. China Petroleum Chemical | Fujian Anjoy vs. PetroChina Co Ltd | Fujian Anjoy vs. China State Construction | Fujian Anjoy vs. China Railway Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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