Correlation Between China Construction and Fujian Anjoy
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Fujian Anjoy Foods, you can compare the effects of market volatilities on China Construction 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 Construction with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Fujian Anjoy.
Diversification Opportunities for China Construction and Fujian Anjoy
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Fujian is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank 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 Construction 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 Construction Bank 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 Construction i.e., China Construction and Fujian Anjoy go up and down completely randomly.
Pair Corralation between China Construction and Fujian Anjoy
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.51 times more return on investment than Fujian Anjoy. However, China Construction Bank is 1.97 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 -0.08 per unit of risk. If you would invest 825.00 in China Construction Bank on October 10, 2024 and sell it today you would earn a total of 40.00 from holding China Construction Bank or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Fujian Anjoy Foods
Performance |
| Timeline |
| China Construction Bank |
| Fujian Anjoy Foods |
China Construction and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Fujian Anjoy
The main advantage of trading using opposite China Construction and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction 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 Construction vs. China Mobile Limited | China Construction vs. Haima Automobile Group | China Construction vs. Henan Shuanghui Investment | China Construction vs. Zhejiang Construction Investment |
| Fujian Anjoy vs. Wuhan Hvsen Biotechnology | Fujian Anjoy vs. Jiangsu GDK Biotechnology | Fujian Anjoy vs. Changchun BCHT Biotechnology | Fujian Anjoy vs. Shenzhen Noposion Agrochemicals |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |