Correlation Between Markor International and Fujian Anjoy
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By analyzing existing cross correlation between Markor International Home and Fujian Anjoy Foods, you can compare the effects of market volatilities on Markor International 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 Markor International with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markor International and Fujian Anjoy.
Diversification Opportunities for Markor International and Fujian Anjoy
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Markor and Fujian is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Markor International Home 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 Markor International 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 Markor International Home 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 Markor International i.e., Markor International and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Markor International and Fujian Anjoy
Assuming the 90 days trading horizon Markor International Home is expected to under-perform the Fujian Anjoy. In addition to that, Markor International is 1.91 times more volatile than Fujian Anjoy Foods. It trades about -0.29 of its total potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.25 per unit of volatility. If you would invest 8,185 in Fujian Anjoy Foods on October 28, 2024 and sell it today you would lose (609.00) from holding Fujian Anjoy Foods or give up 7.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Markor International Home vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Markor International Home |
| Fujian Anjoy Foods |
Markor International and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Markor International and Fujian Anjoy
The main advantage of trading using opposite Markor International and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markor International 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.The idea behind Markor International Home and Fujian Anjoy Foods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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