Correlation Between Fujian Anjoy and Haima Automobile
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By analyzing existing cross correlation between Fujian Anjoy Foods and Haima Automobile Group, you can compare the effects of market volatilities on Fujian Anjoy and Haima Automobile 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 Fujian Anjoy with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and Haima Automobile.
Diversification Opportunities for Fujian Anjoy and Haima Automobile
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Haima is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy Foods and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Fujian Anjoy 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 Fujian Anjoy Foods are associated (or correlated) with Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Fujian Anjoy i.e., Fujian Anjoy and Haima Automobile go up and down completely randomly.
Pair Corralation between Fujian Anjoy and Haima Automobile
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to under-perform the Haima Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Anjoy Foods is 1.39 times less risky than Haima Automobile. The stock trades about -0.05 of its potential returns per unit of risk. The Haima Automobile Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 502.00 in Haima Automobile Group on October 29, 2024 and sell it today you would lose (100.00) from holding Haima Automobile Group or give up 19.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Anjoy Foods vs. Haima Automobile Group
Performance |
| Timeline |
| Fujian Anjoy Foods |
| Haima Automobile |
Fujian Anjoy and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Anjoy and Haima Automobile
The main advantage of trading using opposite Fujian Anjoy and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Fujian Anjoy vs. China Building Material | Fujian Anjoy vs. Western Metal Materials | Fujian Anjoy vs. China Life Insurance | Fujian Anjoy vs. Fuda Alloy Materials |
| Haima Automobile vs. China Longyuan Power | Haima Automobile vs. PetroChina Co Ltd | Haima Automobile vs. Guangxi Guiguan Electric | Haima Automobile vs. Yantai North Andre |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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