Correlation Between Anhui Fuhuang and Fujian Wanchen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Fuhuang Steel and Fujian Wanchen Biotechnology, you can compare the effects of market volatilities on Anhui Fuhuang and Fujian Wanchen 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 Anhui Fuhuang with a short position of Fujian Wanchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Fuhuang and Fujian Wanchen.
Diversification Opportunities for Anhui Fuhuang and Fujian Wanchen
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Fujian is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Fuhuang Steel and Fujian Wanchen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Wanchen Biote and Anhui Fuhuang 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 Anhui Fuhuang Steel are associated (or correlated) with Fujian Wanchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Wanchen Biote has no effect on the direction of Anhui Fuhuang i.e., Anhui Fuhuang and Fujian Wanchen go up and down completely randomly.
Pair Corralation between Anhui Fuhuang and Fujian Wanchen
If you would invest 7,895 in Fujian Wanchen Biotechnology on November 9, 2024 and sell it today you would earn a total of 1,904 from holding Fujian Wanchen Biotechnology or generate 24.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 6.25% |
| Values | Daily Returns |
Anhui Fuhuang Steel vs. Fujian Wanchen Biotechnology
Performance |
| Timeline |
| Anhui Fuhuang Steel |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Fujian Wanchen Biote |
Risk-Adjusted Performance
OK
Weak | Strong |
Anhui Fuhuang and Fujian Wanchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Fuhuang and Fujian Wanchen
The main advantage of trading using opposite Anhui Fuhuang and Fujian Wanchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Fuhuang position performs unexpectedly, Fujian Wanchen 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 Wanchen will offset losses from the drop in Fujian Wanchen's long position.The idea behind Anhui Fuhuang Steel and Fujian Wanchen Biotechnology 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.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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |