Correlation Between Anhui Fuhuang and Fuyao Glass
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By analyzing existing cross correlation between Anhui Fuhuang Steel and Fuyao Glass Industry, you can compare the effects of market volatilities on Anhui Fuhuang and Fuyao Glass 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 Fuyao Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Fuhuang and Fuyao Glass.
Diversification Opportunities for Anhui Fuhuang and Fuyao Glass
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anhui and Fuyao is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Fuhuang Steel and Fuyao Glass Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuyao Glass Industry 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 Fuyao Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuyao Glass Industry has no effect on the direction of Anhui Fuhuang i.e., Anhui Fuhuang and Fuyao Glass go up and down completely randomly.
Pair Corralation between Anhui Fuhuang and Fuyao Glass
Assuming the 90 days trading horizon Anhui Fuhuang Steel is expected to generate 2.25 times more return on investment than Fuyao Glass. However, Anhui Fuhuang is 2.25 times more volatile than Fuyao Glass Industry. It trades about 0.33 of its potential returns per unit of risk. Fuyao Glass Industry is currently generating about 0.16 per unit of risk. If you would invest 357.00 in Anhui Fuhuang Steel on September 12, 2024 and sell it today you would earn a total of 410.00 from holding Anhui Fuhuang Steel or generate 114.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.28% |
| Values | Daily Returns |
Anhui Fuhuang Steel vs. Fuyao Glass Industry
Performance |
| Timeline |
| Anhui Fuhuang Steel |
| Fuyao Glass Industry |
Anhui Fuhuang and Fuyao Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Fuhuang and Fuyao Glass
The main advantage of trading using opposite Anhui Fuhuang and Fuyao Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Fuhuang position performs unexpectedly, Fuyao Glass 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 Fuyao Glass will offset losses from the drop in Fuyao Glass' long position.| Anhui Fuhuang vs. Sichuan Fulin Transportation | Anhui Fuhuang vs. Shanghai Broadband Technology | Anhui Fuhuang vs. Dazhong Transportation Group | Anhui Fuhuang vs. Hubeiyichang Transportation Group |
| Fuyao Glass vs. Guangzhou KingTeller Technology | Fuyao Glass vs. Dongguan Aohai Technology | Fuyao Glass vs. Jiangsu Yueda Investment | Fuyao Glass vs. Tianshui Huatian Technology |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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