Correlation Between Fujian Anjoy and Wuhan Hvsen
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By analyzing existing cross correlation between Fujian Anjoy Foods and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Fujian Anjoy and Wuhan Hvsen 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 Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and Wuhan Hvsen.
Diversification Opportunities for Fujian Anjoy and Wuhan Hvsen
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Wuhan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy Foods and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology 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 Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of Fujian Anjoy i.e., Fujian Anjoy and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Fujian Anjoy and Wuhan Hvsen
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to under-perform the Wuhan Hvsen. In addition to that, Fujian Anjoy is 1.0 times more volatile than Wuhan Hvsen Biotechnology. It trades about -0.02 of its total potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about 0.26 per unit of volatility. If you would invest 1,100 in Wuhan Hvsen Biotechnology on September 5, 2024 and sell it today you would earn a total of 165.00 from holding Wuhan Hvsen Biotechnology or generate 15.0% 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. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Fujian Anjoy Foods |
| Wuhan Hvsen Biotechnology |
Fujian Anjoy and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Anjoy and Wuhan Hvsen
The main advantage of trading using opposite Fujian Anjoy and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| Fujian Anjoy vs. Suzhou Xingye Material | Fujian Anjoy vs. Jiangxi Naipu Mining | Fujian Anjoy vs. Pengxin International Mining | Fujian Anjoy vs. Sinosteel Luonai Materials |
| Wuhan Hvsen vs. Fujian Anjoy Foods | Wuhan Hvsen vs. Great Sun Foods Co | Wuhan Hvsen vs. Beijing Sanyuan Foods | Wuhan Hvsen vs. Muyuan Foodstuff 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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