Correlation Between Changsha DIALINE and Fujian Anjoy
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By analyzing existing cross correlation between Changsha DIALINE New and Fujian Anjoy Foods, you can compare the effects of market volatilities on Changsha DIALINE 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 Changsha DIALINE with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changsha DIALINE and Fujian Anjoy.
Diversification Opportunities for Changsha DIALINE and Fujian Anjoy
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Changsha and Fujian is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Changsha DIALINE New 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 Changsha DIALINE 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 Changsha DIALINE New 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 Changsha DIALINE i.e., Changsha DIALINE and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Changsha DIALINE and Fujian Anjoy
Assuming the 90 days trading horizon Changsha DIALINE New is expected to generate 1.47 times more return on investment than Fujian Anjoy. However, Changsha DIALINE is 1.47 times more volatile than Fujian Anjoy Foods. It trades about 0.17 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 578.00 in Changsha DIALINE New on September 12, 2024 and sell it today you would earn a total of 327.00 from holding Changsha DIALINE New or generate 56.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changsha DIALINE New vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Changsha DIALINE New |
| Fujian Anjoy Foods |
Changsha DIALINE and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changsha DIALINE and Fujian Anjoy
The main advantage of trading using opposite Changsha DIALINE and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changsha DIALINE 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.| Changsha DIALINE vs. Liaoning Dingjide Petrochemical | Changsha DIALINE vs. Guangzhou Ruoyuchen Information | Changsha DIALINE vs. Daoming OpticsChemical Co | Changsha DIALINE vs. Westone Information Industry |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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