Correlation Between AVCON Information and Fujian Anjoy
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By analyzing existing cross correlation between AVCON Information Tech and Fujian Anjoy Foods, you can compare the effects of market volatilities on AVCON Information 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 AVCON Information with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and Fujian Anjoy.
Diversification Opportunities for AVCON Information and Fujian Anjoy
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AVCON and Fujian is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech 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 AVCON Information 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 AVCON Information Tech 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 AVCON Information i.e., AVCON Information and Fujian Anjoy go up and down completely randomly.
Pair Corralation between AVCON Information and Fujian Anjoy
Assuming the 90 days trading horizon AVCON Information Tech is expected to under-perform the Fujian Anjoy. In addition to that, AVCON Information is 2.6 times more volatile than Fujian Anjoy Foods. It trades about -0.22 of its total potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.27 per unit of volatility. If you would invest 8,460 in Fujian Anjoy Foods on October 20, 2024 and sell it today you would lose (770.00) from holding Fujian Anjoy Foods or give up 9.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVCON Information Tech vs. Fujian Anjoy Foods
Performance |
| Timeline |
| AVCON Information Tech |
| Fujian Anjoy Foods |
AVCON Information and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and Fujian Anjoy
The main advantage of trading using opposite AVCON Information and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information 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.| AVCON Information vs. Zhejiang Yinlun Machinery | AVCON Information vs. Guangzhou KDT Machinery | AVCON Information vs. Jinlong Machinery Electronic | AVCON Information vs. Sanxiang Advanced Materials |
| Fujian Anjoy vs. Heilongjiang Publishing Media | Fujian Anjoy vs. Northern United Publishing | Fujian Anjoy vs. Changjiang Publishing Media | Fujian Anjoy vs. Yingde Greatchem Chemicals |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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