Correlation Between Fujian Wanchen and Anhui Transport
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Anhui Transport Consulting, you can compare the effects of market volatilities on Fujian Wanchen and Anhui Transport 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 Fujian Wanchen with a short position of Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Anhui Transport.
Diversification Opportunities for Fujian Wanchen and Anhui Transport
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fujian and Anhui is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons and Fujian Wanchen 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 Fujian Wanchen Biotechnology are associated (or correlated) with Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Fujian Wanchen i.e., Fujian Wanchen and Anhui Transport go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Anhui Transport
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 2.36 times more return on investment than Anhui Transport. However, Fujian Wanchen is 2.36 times more volatile than Anhui Transport Consulting. It trades about 0.29 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.02 per unit of risk. If you would invest 2,026 in Fujian Wanchen Biotechnology on November 3, 2024 and sell it today you would earn a total of 8,254 from holding Fujian Wanchen Biotechnology or generate 407.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Wanchen Biotechnology vs. Anhui Transport Consulting
Performance |
| Timeline |
| Fujian Wanchen Biote |
| Anhui Transport Cons |
Fujian Wanchen and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and Anhui Transport
The main advantage of trading using opposite Fujian Wanchen and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport's long position.| Fujian Wanchen vs. Bus Online Co | Fujian Wanchen vs. Holitech Technology Co | Fujian Wanchen vs. Gome Telecom Equipment | Fujian Wanchen vs. Cultural Investment Holdings |
| Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. Kweichow Moutai Co | Anhui Transport vs. Agricultural Bank of | Anhui Transport vs. China Mobile Limited |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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