Correlation Between China Citic and Fujian Anjoy
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Citic Bank and Fujian Anjoy Foods, you can compare the effects of market volatilities on China Citic 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 Citic with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Citic and Fujian Anjoy.
Diversification Opportunities for China Citic and Fujian Anjoy
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Fujian is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding China Citic 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 Citic 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 Citic 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 Citic i.e., China Citic and Fujian Anjoy go up and down completely randomly.
Pair Corralation between China Citic and Fujian Anjoy
Assuming the 90 days trading horizon China Citic Bank is expected to generate 0.7 times more return on investment than Fujian Anjoy. However, China Citic Bank is 1.43 times less risky than Fujian Anjoy. It trades about 0.05 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 558.00 in China Citic Bank on September 12, 2024 and sell it today you would earn a total of 173.00 from holding China Citic Bank or generate 31.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Citic Bank vs. Fujian Anjoy Foods
Performance |
| Timeline |
| China Citic Bank |
| Fujian Anjoy Foods |
China Citic and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Citic and Fujian Anjoy
The main advantage of trading using opposite China Citic and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Citic 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 Citic vs. Zhejiang Publishing Media | China Citic vs. Tianjin Hi Tech Development | China Citic vs. Guangdong Shenglu Telecommunication | China Citic vs. Huaxia Fund Management |
| Fujian Anjoy vs. China Petroleum Chemical | Fujian Anjoy vs. PetroChina Co Ltd | Fujian Anjoy vs. China State Construction | Fujian Anjoy vs. China Railway Group |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |