Correlation Between Fujian Anjoy and Shandong Homey
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By analyzing existing cross correlation between Fujian Anjoy Foods and Shandong Homey Aquatic, you can compare the effects of market volatilities on Fujian Anjoy and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and Shandong Homey.
Diversification Opportunities for Fujian Anjoy and Shandong Homey
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fujian and Shandong is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy Foods and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of Fujian Anjoy i.e., Fujian Anjoy and Shandong Homey go up and down completely randomly.
Pair Corralation between Fujian Anjoy and Shandong Homey
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to generate 0.45 times more return on investment than Shandong Homey. However, Fujian Anjoy Foods is 2.21 times less risky than Shandong Homey. It trades about -0.68 of its potential returns per unit of risk. Shandong Homey Aquatic is currently generating about -0.37 per unit of risk. If you would invest 9,201 in Fujian Anjoy Foods on October 14, 2024 and sell it today you would lose (1,790) from holding Fujian Anjoy Foods or give up 19.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Anjoy Foods vs. Shandong Homey Aquatic
Performance |
| Timeline |
| Fujian Anjoy Foods |
| Shandong Homey Aquatic |
Fujian Anjoy and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Anjoy and Shandong Homey
The main advantage of trading using opposite Fujian Anjoy and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey's long position.| Fujian Anjoy vs. Rising Nonferrous Metals | Fujian Anjoy vs. Xilong Chemical Co | Fujian Anjoy vs. Maoming Petro Chemical Shihua | Fujian Anjoy vs. Miracll Chemicals Co |
| Shandong Homey vs. Harbin Hatou Investment | Shandong Homey vs. GRG Banking Equipment | Shandong Homey vs. Bank of Suzhou | Shandong Homey vs. Sunny Loan Top |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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