Correlation Between Fujian Anjoy and Xinjiang Communications
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By analyzing existing cross correlation between Fujian Anjoy Foods and Xinjiang Communications Construction, you can compare the effects of market volatilities on Fujian Anjoy and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and Xinjiang Communications.
Diversification Opportunities for Fujian Anjoy and Xinjiang Communications
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Xinjiang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy Foods and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Fujian Anjoy i.e., Fujian Anjoy and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Fujian Anjoy and Xinjiang Communications
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to under-perform the Xinjiang Communications. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Anjoy Foods is 1.22 times less risky than Xinjiang Communications. The stock trades about -0.05 of its potential returns per unit of risk. The Xinjiang Communications Construction is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,308 in Xinjiang Communications Construction on November 1, 2024 and sell it today you would lose (235.00) from holding Xinjiang Communications Construction or give up 17.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Anjoy Foods vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Fujian Anjoy Foods |
| Xinjiang Communications |
Fujian Anjoy and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Anjoy and Xinjiang Communications
The main advantage of trading using opposite Fujian Anjoy and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Fujian Anjoy vs. Heilongjiang Transport Development | Fujian Anjoy vs. Silkroad Visual Technology | Fujian Anjoy vs. Xinjiang Beixin RoadBridge | Fujian Anjoy vs. Chengdu Xinzhu RoadBridge |
| Xinjiang Communications vs. Anji Foodstuff Co | Xinjiang Communications vs. Ping An Insurance | Xinjiang Communications vs. Fujian Anjoy Foods | Xinjiang Communications vs. JuneYao Dairy Co |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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