Correlation Between GRG Banking and Fujian Anjoy
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By analyzing existing cross correlation between GRG Banking Equipment and Fujian Anjoy Foods, you can compare the effects of market volatilities on GRG Banking 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 GRG Banking with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Fujian Anjoy.
Diversification Opportunities for GRG Banking and Fujian Anjoy
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRG and Fujian is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment 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 GRG Banking 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 GRG Banking Equipment 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 GRG Banking i.e., GRG Banking and Fujian Anjoy go up and down completely randomly.
Pair Corralation between GRG Banking and Fujian Anjoy
Assuming the 90 days trading horizon GRG Banking Equipment is expected to generate 1.03 times more return on investment than Fujian Anjoy. However, GRG Banking is 1.03 times more volatile than Fujian Anjoy Foods. It trades about 0.08 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.23 per unit of risk. If you would invest 1,090 in GRG Banking Equipment on November 4, 2024 and sell it today you would earn a total of 23.00 from holding GRG Banking Equipment or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Fujian Anjoy Foods
Performance |
| Timeline |
| GRG Banking Equipment |
| Fujian Anjoy Foods |
GRG Banking and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Fujian Anjoy
The main advantage of trading using opposite GRG Banking and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking 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.| GRG Banking vs. Postal Savings Bank | GRG Banking vs. Hubei Geoway Investment | GRG Banking vs. Shenzhen Centralcon Investment | GRG Banking vs. Shenwu Energy Saving |
| Fujian Anjoy vs. Omnijoi Media Corp | Fujian Anjoy vs. Shanghai Action Education | Fujian Anjoy vs. Time Publishing and | Fujian Anjoy vs. Qtone Education 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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