Correlation Between Fujian Anjoy and AVCON Information
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By analyzing existing cross correlation between Fujian Anjoy Foods and AVCON Information Tech, you can compare the effects of market volatilities on Fujian Anjoy and AVCON Information 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 AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and AVCON Information.
Diversification Opportunities for Fujian Anjoy and AVCON Information
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and AVCON is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy Foods and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech 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 AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Fujian Anjoy i.e., Fujian Anjoy and AVCON Information go up and down completely randomly.
Pair Corralation between Fujian Anjoy and AVCON Information
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to under-perform the AVCON Information. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Anjoy Foods is 1.49 times less risky than AVCON Information. The stock trades about -0.01 of its potential returns per unit of risk. The AVCON Information Tech is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 507.00 in AVCON Information Tech on September 14, 2024 and sell it today you would earn a total of 3.00 from holding AVCON Information Tech or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Fujian Anjoy Foods vs. AVCON Information Tech
Performance |
| Timeline |
| Fujian Anjoy Foods |
| AVCON Information Tech |
Fujian Anjoy and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Anjoy and AVCON Information
The main advantage of trading using opposite Fujian Anjoy and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information'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 |
| AVCON Information vs. Industrial and Commercial | AVCON Information vs. China Construction Bank | AVCON Information vs. Bank of China | AVCON Information vs. Agricultural Bank of |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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