Correlation Between Fujian Nanwang and Anhui Shiny
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By analyzing existing cross correlation between Fujian Nanwang Environment and Anhui Shiny Electronic, you can compare the effects of market volatilities on Fujian Nanwang and Anhui Shiny 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 Nanwang with a short position of Anhui Shiny. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Anhui Shiny.
Diversification Opportunities for Fujian Nanwang and Anhui Shiny
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fujian and Anhui is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and Anhui Shiny Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Shiny Electronic and Fujian Nanwang 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 Nanwang Environment are associated (or correlated) with Anhui Shiny. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Shiny Electronic has no effect on the direction of Fujian Nanwang i.e., Fujian Nanwang and Anhui Shiny go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Anhui Shiny
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to under-perform the Anhui Shiny. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Nanwang Environment is 1.82 times less risky than Anhui Shiny. The stock trades about -0.05 of its potential returns per unit of risk. The Anhui Shiny Electronic is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,543 in Anhui Shiny Electronic on November 6, 2024 and sell it today you would earn a total of 541.00 from holding Anhui Shiny Electronic or generate 35.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 83.44% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Anhui Shiny Electronic
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Anhui Shiny Electronic |
Fujian Nanwang and Anhui Shiny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Anhui Shiny
The main advantage of trading using opposite Fujian Nanwang and Anhui Shiny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang position performs unexpectedly, Anhui Shiny 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 Shiny will offset losses from the drop in Anhui Shiny's long position.| Fujian Nanwang vs. Fibocom Wireless | Fujian Nanwang vs. Jiangsu Financial Leasing | Fujian Nanwang vs. Shandong Homey Aquatic | Fujian Nanwang vs. Bingo Software Co |
| Anhui Shiny vs. Chengtun Mining Group | Anhui Shiny vs. Guangzhou Haozhi Industrial | Anhui Shiny vs. Zhejiang Zhengguang Industrial | Anhui Shiny vs. Xinhua Winshare Publishing |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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