Correlation Between Changjiang Jinggong and Fujian Anjoy
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By analyzing existing cross correlation between Changjiang Jinggong Steel and Fujian Anjoy Foods, you can compare the effects of market volatilities on Changjiang Jinggong 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 Changjiang Jinggong with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Jinggong and Fujian Anjoy.
Diversification Opportunities for Changjiang Jinggong and Fujian Anjoy
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changjiang and Fujian is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Jinggong Steel 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 Changjiang Jinggong 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 Changjiang Jinggong Steel 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 Changjiang Jinggong i.e., Changjiang Jinggong and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Changjiang Jinggong and Fujian Anjoy
Assuming the 90 days trading horizon Changjiang Jinggong Steel is expected to generate 0.63 times more return on investment than Fujian Anjoy. However, Changjiang Jinggong Steel is 1.58 times less risky than Fujian Anjoy. It trades about 0.02 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.01 per unit of risk. If you would invest 327.00 in Changjiang Jinggong Steel on September 14, 2024 and sell it today you would earn a total of 11.00 from holding Changjiang Jinggong Steel or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Jinggong Steel vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Changjiang Jinggong Steel |
| Fujian Anjoy Foods |
Changjiang Jinggong and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Jinggong and Fujian Anjoy
The main advantage of trading using opposite Changjiang Jinggong and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Jinggong 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.| Changjiang Jinggong vs. Ming Yang Smart | Changjiang Jinggong vs. 159681 | Changjiang Jinggong vs. 159005 | Changjiang Jinggong vs. Loctek Ergonomic Technology |
| Fujian Anjoy vs. Jiangxi JDL Environmental | Fujian Anjoy vs. Hainan Haiqi Transportation | Fujian Anjoy vs. Changjiang Jinggong Steel | Fujian Anjoy vs. Anyang Iron Steel |
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 CEOs Directory module to screen CEOs from public companies around the world.
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