Correlation Between Fujian Anjoy and Aba Chemicals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Anjoy Foods and Aba Chemicals Corp, you can compare the effects of market volatilities on Fujian Anjoy and Aba Chemicals 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 Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and Aba Chemicals.
Diversification Opportunities for Fujian Anjoy and Aba Chemicals
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Aba is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy Foods and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp 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 Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of Fujian Anjoy i.e., Fujian Anjoy and Aba Chemicals go up and down completely randomly.
Pair Corralation between Fujian Anjoy and Aba Chemicals
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to generate 0.9 times more return on investment than Aba Chemicals. However, Fujian Anjoy Foods is 1.11 times less risky than Aba Chemicals. It trades about -0.09 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about -0.16 per unit of risk. If you would invest 8,652 in Fujian Anjoy Foods on November 1, 2024 and sell it today you would lose (1,132) from holding Fujian Anjoy Foods or give up 13.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Anjoy Foods vs. Aba Chemicals Corp
Performance |
| Timeline |
| Fujian Anjoy Foods |
| Aba Chemicals Corp |
Fujian Anjoy and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Anjoy and Aba Chemicals
The main advantage of trading using opposite Fujian Anjoy and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| Fujian Anjoy vs. Gansu Huangtai Wine marketing | Fujian Anjoy vs. Xiamen Insight Investment | Fujian Anjoy vs. Beijing Mainstreets Investment | Fujian Anjoy vs. Zoje Resources Investment |
| Aba Chemicals vs. Anhui Deli Household | Aba Chemicals vs. Hefei Metalforming Mach | Aba Chemicals vs. Easyhome New Retail | Aba Chemicals vs. Pengxin International Mining |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |