Correlation Between Jiangsu Jinling and Fujian Anjoy
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Fujian Anjoy Foods, you can compare the effects of market volatilities on Jiangsu Jinling 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 Jiangsu Jinling with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Fujian Anjoy.
Diversification Opportunities for Jiangsu Jinling and Fujian Anjoy
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Fujian is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports 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 Jiangsu Jinling 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 Jiangsu Jinling Sports 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 Jiangsu Jinling i.e., Jiangsu Jinling and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Fujian Anjoy
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 0.95 times more return on investment than Fujian Anjoy. However, Jiangsu Jinling Sports is 1.05 times less risky than Fujian Anjoy. It trades about 0.16 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about 0.13 per unit of risk. If you would invest 1,096 in Jiangsu Jinling Sports on September 12, 2024 and sell it today you would earn a total of 359.00 from holding Jiangsu Jinling Sports or generate 32.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.28% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Fujian Anjoy Foods |
Jiangsu Jinling and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Fujian Anjoy
The main advantage of trading using opposite Jiangsu Jinling and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling 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.| Jiangsu Jinling vs. Lutian Machinery Co | Jiangsu Jinling vs. China Longyuan Power | Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. Bank of China |
| Fujian Anjoy vs. Nanjing Putian Telecommunications | Fujian Anjoy vs. Tianjin Realty Development | Fujian Anjoy vs. Kangyue Technology Co | Fujian Anjoy vs. Shenzhen Hifuture Electric |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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