Correlation Between Fujian Anjoy and Holitech Technology
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By analyzing existing cross correlation between Fujian Anjoy Foods and Holitech Technology Co, you can compare the effects of market volatilities on Fujian Anjoy and Holitech Technology 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 Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and Holitech Technology.
Diversification Opportunities for Fujian Anjoy and Holitech Technology
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Holitech is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy Foods and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology 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 Holitech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holitech Technology has no effect on the direction of Fujian Anjoy i.e., Fujian Anjoy and Holitech Technology go up and down completely randomly.
Pair Corralation between Fujian Anjoy and Holitech Technology
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to under-perform the Holitech Technology. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Anjoy Foods is 1.44 times less risky than Holitech Technology. The stock trades about -0.24 of its potential returns per unit of risk. The Holitech Technology Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 202.00 in Holitech Technology Co on November 8, 2024 and sell it today you would earn a total of 8.00 from holding Holitech Technology Co or generate 3.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Fujian Anjoy Foods vs. Holitech Technology Co
Performance |
Timeline |
Fujian Anjoy Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Holitech Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fujian Anjoy and Holitech Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fujian Anjoy and Holitech Technology
The main advantage of trading using opposite Fujian Anjoy and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy position performs unexpectedly, Holitech Technology 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 Holitech Technology will offset losses from the drop in Holitech Technology's long position.The idea behind Fujian Anjoy Foods and Holitech Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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