Correlation Between Industrial and Fujian Anjoy
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By analyzing existing cross correlation between Industrial and Commercial and Fujian Anjoy Foods, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Fujian Anjoy.
Diversification Opportunities for Industrial and Fujian Anjoy
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Industrial and Fujian is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Industrial and Fujian Anjoy
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.89 times more return on investment than Fujian Anjoy. However, Industrial and Commercial is 1.13 times less risky than Fujian Anjoy. It trades about -0.19 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.43 per unit of risk. If you would invest 678.00 in Industrial and Commercial on October 25, 2024 and sell it today you would lose (34.00) from holding Industrial and Commercial or give up 5.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Industrial and Commercial |
| Fujian Anjoy Foods |
Industrial and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Fujian Anjoy
The main advantage of trading using opposite Industrial and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Touchstone International Medical | Industrial vs. Dazhong Transportation Group | Industrial vs. Shenzhen Topway Video | Industrial vs. Allgens Medical Technology |
| Fujian Anjoy vs. Shenwu Energy Saving | Fujian Anjoy vs. GRG Banking Equipment | Fujian Anjoy vs. Aba Chemicals Corp | Fujian Anjoy vs. Yingde Greatchem Chemicals |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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