Correlation Between Fujian Anjoy and CIMC Vehicles
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By analyzing existing cross correlation between Fujian Anjoy Foods and CIMC Vehicles Co, you can compare the effects of market volatilities on Fujian Anjoy and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and CIMC Vehicles.
Diversification Opportunities for Fujian Anjoy and CIMC Vehicles
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and CIMC is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy Foods and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Fujian Anjoy i.e., Fujian Anjoy and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Fujian Anjoy and CIMC Vehicles
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to under-perform the CIMC Vehicles. In addition to that, Fujian Anjoy is 1.31 times more volatile than CIMC Vehicles Co. It trades about -0.75 of its total potential returns per unit of risk. CIMC Vehicles Co is currently generating about -0.66 per unit of volatility. If you would invest 1,015 in CIMC Vehicles Co on October 13, 2024 and sell it today you would lose (151.00) from holding CIMC Vehicles Co or give up 14.88% 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. CIMC Vehicles Co
Performance |
| Timeline |
| Fujian Anjoy Foods |
| CIMC Vehicles |
Fujian Anjoy and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Anjoy and CIMC Vehicles
The main advantage of trading using opposite Fujian Anjoy and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' long position.| Fujian Anjoy vs. Industrial and Commercial | Fujian Anjoy vs. Agricultural Bank of | Fujian Anjoy vs. China Construction Bank | Fujian Anjoy vs. Bank of China |
| CIMC Vehicles vs. Fujian Anjoy Foods | CIMC Vehicles vs. Sinomach Automobile Co | CIMC Vehicles vs. Ligao Foods CoLtd | CIMC Vehicles vs. Anji 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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