Correlation Between Bank of China and Fujian Anjoy
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By analyzing existing cross correlation between Bank of China and Fujian Anjoy Foods, you can compare the effects of market volatilities on Bank of China 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 Bank of China with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Fujian Anjoy.
Diversification Opportunities for Bank of China and Fujian Anjoy
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Fujian is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China 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 Bank of China 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 Bank of China 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 Bank of China i.e., Bank of China and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Bank of China and Fujian Anjoy
Assuming the 90 days trading horizon Bank of China is expected to generate 0.46 times more return on investment than Fujian Anjoy. However, Bank of China is 2.16 times less risky than Fujian Anjoy. It trades about 0.25 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 515.00 in Bank of China on October 10, 2024 and sell it today you would earn a total of 31.00 from holding Bank of China or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Bank of China |
| Fujian Anjoy Foods |
Bank of China and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Fujian Anjoy
The main advantage of trading using opposite Bank of China and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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.| Bank of China vs. Hengdian Entertainment Co | Bank of China vs. Guangzhou Jinyi Media | Bank of China vs. Fuda Alloy Materials | Bank of China vs. Guangdong Jinma Entertainment |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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