Correlation Between Beijing Watertek and Fujian Anjoy
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By analyzing existing cross correlation between Beijing Watertek Information and Fujian Anjoy Foods, you can compare the effects of market volatilities on Beijing Watertek 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 Beijing Watertek with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Watertek and Fujian Anjoy.
Diversification Opportunities for Beijing Watertek and Fujian Anjoy
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Fujian is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Watertek Information 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 Beijing Watertek 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 Beijing Watertek Information 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 Beijing Watertek i.e., Beijing Watertek and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Beijing Watertek and Fujian Anjoy
Assuming the 90 days trading horizon Beijing Watertek Information is expected to generate 1.75 times more return on investment than Fujian Anjoy. However, Beijing Watertek is 1.75 times more volatile than Fujian Anjoy Foods. It trades about 0.12 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about 0.05 per unit of risk. If you would invest 216.00 in Beijing Watertek Information on October 18, 2024 and sell it today you would earn a total of 110.00 from holding Beijing Watertek Information or generate 50.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Watertek Information vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Beijing Watertek Inf |
| Fujian Anjoy Foods |
Beijing Watertek and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Watertek and Fujian Anjoy
The main advantage of trading using opposite Beijing Watertek and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Watertek 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.| Beijing Watertek vs. Invengo Information Technology | Beijing Watertek vs. HaiXin Foods Co | Beijing Watertek vs. AVCON Information Tech | Beijing Watertek vs. Fujian Anjoy Foods |
| Fujian Anjoy vs. Yangmei Chemical Co | Fujian Anjoy vs. Tongyu Communication | Fujian Anjoy vs. Ningxia Younglight Chemicals | Fujian Anjoy vs. Liaoning Dingjide Petrochemical |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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