Correlation Between Fujian Anjoy and Sinomach General
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Anjoy Foods and Sinomach General Machinery, you can compare the effects of market volatilities on Fujian Anjoy and Sinomach General 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 Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and Sinomach General.
Diversification Opportunities for Fujian Anjoy and Sinomach General
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Sinomach is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy Foods and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Fujian Anjoy i.e., Fujian Anjoy and Sinomach General go up and down completely randomly.
Pair Corralation between Fujian Anjoy and Sinomach General
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to under-perform the Sinomach General. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Anjoy Foods is 1.46 times less risky than Sinomach General. The stock trades about -0.02 of its potential returns per unit of risk. The Sinomach General Machinery is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,563 in Sinomach General Machinery on September 5, 2024 and sell it today you would earn a total of 123.00 from holding Sinomach General Machinery or generate 7.87% 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. Sinomach General Machinery
Performance |
| Timeline |
| Fujian Anjoy Foods |
| Sinomach General Mac |
Fujian Anjoy and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Anjoy and Sinomach General
The main advantage of trading using opposite Fujian Anjoy and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General'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 |
| Sinomach General vs. Caihong Display Devices | Sinomach General vs. Markor International Home | Sinomach General vs. Shanghai Shuixing Home | Sinomach General vs. Hunan Mendale Hometextile |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |