Correlation Between Gan Yuan and Fujian Anjoy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gan Yuan Foods and Fujian Anjoy Foods, you can compare the effects of market volatilities on Gan Yuan 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 Gan Yuan with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Fujian Anjoy.
Diversification Opportunities for Gan Yuan and Fujian Anjoy
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gan and Fujian is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods 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 Gan Yuan 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 Gan Yuan Foods 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 Gan Yuan i.e., Gan Yuan and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Gan Yuan and Fujian Anjoy
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 1.01 times more return on investment than Fujian Anjoy. However, Gan Yuan is 1.01 times more volatile than Fujian Anjoy Foods. It trades about 0.01 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.06 per unit of risk. If you would invest 8,377 in Gan Yuan Foods on November 8, 2024 and sell it today you would lose (247.00) from holding Gan Yuan Foods or give up 2.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Gan Yuan Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Fujian Anjoy Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gan Yuan and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Fujian Anjoy
The main advantage of trading using opposite Gan Yuan and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan 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 Gan Yuan Foods 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.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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |