Correlation Between Rising Nonferrous and Fujian Anjoy
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By analyzing existing cross correlation between Rising Nonferrous Metals and Fujian Anjoy Foods, you can compare the effects of market volatilities on Rising Nonferrous 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 Rising Nonferrous with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Fujian Anjoy.
Diversification Opportunities for Rising Nonferrous and Fujian Anjoy
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rising and Fujian is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals 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 Rising Nonferrous 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 Rising Nonferrous Metals 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 Rising Nonferrous i.e., Rising Nonferrous and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Fujian Anjoy
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 1.89 times more return on investment than Fujian Anjoy. However, Rising Nonferrous is 1.89 times more volatile than Fujian Anjoy Foods. It trades about 0.05 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.25 per unit of risk. If you would invest 2,858 in Rising Nonferrous Metals on October 28, 2024 and sell it today you would earn a total of 62.00 from holding Rising Nonferrous Metals or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Fujian Anjoy Foods |
Rising Nonferrous and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Fujian Anjoy
The main advantage of trading using opposite Rising Nonferrous and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous 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.| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Wanhua Chemical Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous vs. Shandong Gold Mining |
| Fujian Anjoy vs. Kweichow Moutai Co | Fujian Anjoy vs. Contemporary Amperex Technology | Fujian Anjoy vs. G bits Network Technology | Fujian Anjoy vs. Beijing Roborock Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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