Correlation Between TongFu Microelectronics and Fujian Anjoy
Specify exactly 2 symbols:
By analyzing existing cross correlation between TongFu Microelectronics Co and Fujian Anjoy Foods, you can compare the effects of market volatilities on TongFu Microelectronics 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 TongFu Microelectronics with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of TongFu Microelectronics and Fujian Anjoy.
Diversification Opportunities for TongFu Microelectronics and Fujian Anjoy
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TongFu and Fujian is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding TongFu Microelectronics Co 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 TongFu Microelectronics 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 TongFu Microelectronics Co 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 TongFu Microelectronics i.e., TongFu Microelectronics and Fujian Anjoy go up and down completely randomly.
Pair Corralation between TongFu Microelectronics and Fujian Anjoy
Assuming the 90 days trading horizon TongFu Microelectronics Co is expected to generate 1.26 times more return on investment than Fujian Anjoy. However, TongFu Microelectronics is 1.26 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 0.01 per unit of risk. If you would invest 2,076 in TongFu Microelectronics Co on November 3, 2024 and sell it today you would earn a total of 754.00 from holding TongFu Microelectronics Co or generate 36.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TongFu Microelectronics Co vs. Fujian Anjoy Foods
Performance |
| Timeline |
| TongFu Microelectronics |
| Fujian Anjoy Foods |
TongFu Microelectronics and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TongFu Microelectronics and Fujian Anjoy
The main advantage of trading using opposite TongFu Microelectronics and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TongFu Microelectronics 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.The idea behind TongFu Microelectronics Co and Fujian Anjoy Foods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Fujian Anjoy vs. Grandblue Environment Co | Fujian Anjoy vs. Xiandai Investment Co | Fujian Anjoy vs. Qiaoyin Environmental Tech | Fujian Anjoy vs. Zhejiang Construction Investment |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |