Correlation Between Fujian Anjoy and Nuode Investment
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By analyzing existing cross correlation between Fujian Anjoy Foods and Nuode Investment Co, you can compare the effects of market volatilities on Fujian Anjoy and Nuode Investment 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 Nuode Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and Nuode Investment.
Diversification Opportunities for Fujian Anjoy and Nuode Investment
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Nuode is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy Foods and Nuode Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuode Investment 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 Nuode Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuode Investment has no effect on the direction of Fujian Anjoy i.e., Fujian Anjoy and Nuode Investment go up and down completely randomly.
Pair Corralation between Fujian Anjoy and Nuode Investment
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to under-perform the Nuode Investment. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Anjoy Foods is 1.91 times less risky than Nuode Investment. The stock trades about -0.02 of its potential returns per unit of risk. The Nuode Investment Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 392.00 in Nuode Investment Co on September 5, 2024 and sell it today you would earn a total of 65.00 from holding Nuode Investment Co or generate 16.58% 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. Nuode Investment Co
Performance |
| Timeline |
| Fujian Anjoy Foods |
| Nuode Investment |
Fujian Anjoy and Nuode Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Anjoy and Nuode Investment
The main advantage of trading using opposite Fujian Anjoy and Nuode Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy position performs unexpectedly, Nuode Investment 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 Nuode Investment will offset losses from the drop in Nuode Investment'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 |
| Nuode Investment vs. Beijing Sanyuan Foods | Nuode Investment vs. Fujian Anjoy Foods | Nuode Investment vs. Shandong Huifa Foodstuff | Nuode Investment vs. Fiberhome Telecommunication Technologies |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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