Correlation Between Fujian Anjoy and Xiamen Jihong
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By analyzing existing cross correlation between Fujian Anjoy Foods and Xiamen Jihong Package, you can compare the effects of market volatilities on Fujian Anjoy and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and Xiamen Jihong.
Diversification Opportunities for Fujian Anjoy and Xiamen Jihong
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Xiamen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy Foods and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Fujian Anjoy i.e., Fujian Anjoy and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Fujian Anjoy and Xiamen Jihong
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to generate 0.93 times more return on investment than Xiamen Jihong. However, Fujian Anjoy Foods is 1.07 times less risky than Xiamen Jihong. It trades about -0.01 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about -0.03 per unit of risk. If you would invest 11,375 in Fujian Anjoy Foods on September 14, 2024 and sell it today you would lose (1,944) from holding Fujian Anjoy Foods or give up 17.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fujian Anjoy Foods vs. Xiamen Jihong Package
Performance |
Timeline |
Fujian Anjoy Foods |
Xiamen Jihong Package |
Fujian Anjoy and Xiamen Jihong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fujian Anjoy and Xiamen Jihong
The main advantage of trading using opposite Fujian Anjoy and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.Fujian Anjoy vs. Jiangxi JDL Environmental | Fujian Anjoy vs. Hainan Haiqi Transportation | Fujian Anjoy vs. Changjiang Jinggong Steel | Fujian Anjoy vs. Anyang Iron Steel |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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