Correlation Between Jiangxi Naipu and Fujian Anjoy
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Fujian Anjoy Foods, you can compare the effects of market volatilities on Jiangxi Naipu 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 Jiangxi Naipu with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Fujian Anjoy.
Diversification Opportunities for Jiangxi Naipu and Fujian Anjoy
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Fujian is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining 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 Jiangxi Naipu 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 Jiangxi Naipu Mining 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 Jiangxi Naipu i.e., Jiangxi Naipu and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Fujian Anjoy
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to generate 1.14 times more return on investment than Fujian Anjoy. However, Jiangxi Naipu is 1.14 times more volatile than Fujian Anjoy Foods. It trades about 0.07 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.04 per unit of risk. If you would invest 1,433 in Jiangxi Naipu Mining on September 5, 2024 and sell it today you would earn a total of 1,515 from holding Jiangxi Naipu Mining or generate 105.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Fujian Anjoy Foods |
Jiangxi Naipu and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Fujian Anjoy
The main advantage of trading using opposite Jiangxi Naipu and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu 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.| Jiangxi Naipu vs. Bank of China | Jiangxi Naipu vs. Kweichow Moutai Co | Jiangxi Naipu vs. PetroChina Co Ltd | Jiangxi Naipu vs. Bank of Communications |
| Fujian Anjoy vs. Suzhou Xingye Material | Fujian Anjoy vs. Jiangxi Naipu Mining | Fujian Anjoy vs. Pengxin International Mining | Fujian Anjoy vs. Sinosteel Luonai Materials |
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 Stocks Directory module to find actively traded stocks across global markets.
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