Correlation Between China Railway and Fujian Anjoy
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By analyzing existing cross correlation between China Railway Group and Fujian Anjoy Foods, you can compare the effects of market volatilities on China Railway 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 China Railway with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Fujian Anjoy.
Diversification Opportunities for China Railway and Fujian Anjoy
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Fujian is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group 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 China Railway 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 China Railway Group 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 China Railway i.e., China Railway and Fujian Anjoy go up and down completely randomly.
Pair Corralation between China Railway and Fujian Anjoy
Assuming the 90 days trading horizon China Railway Group is expected to generate 0.8 times more return on investment than Fujian Anjoy. However, China Railway Group is 1.25 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 -0.05 per unit of risk. If you would invest 664.00 in China Railway Group on September 13, 2024 and sell it today you would lose (7.00) from holding China Railway Group or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Group vs. Fujian Anjoy Foods
Performance |
| Timeline |
| China Railway Group |
| Fujian Anjoy Foods |
China Railway and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Fujian Anjoy
The main advantage of trading using opposite China Railway and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway 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.| China Railway vs. Hangzhou Weiguang Electronic | China Railway vs. Fuzhou Rockchip Electronics | China Railway vs. YiDong Electronics Technology | China Railway vs. LianChuang Electronic Technology |
| Fujian Anjoy vs. Nanjing Putian Telecommunications | Fujian Anjoy vs. Tianjin Realty Development | Fujian Anjoy vs. Kangyue Technology Co | Fujian Anjoy vs. Shenzhen Hifuture Electric |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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