Correlation Between Fujian Anjoy and AECC Aviation
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By analyzing existing cross correlation between Fujian Anjoy Foods and AECC Aviation Power, you can compare the effects of market volatilities on Fujian Anjoy and AECC Aviation 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 AECC Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and AECC Aviation.
Diversification Opportunities for Fujian Anjoy and AECC Aviation
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and AECC is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy Foods and AECC Aviation Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AECC Aviation Power 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 AECC Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AECC Aviation Power has no effect on the direction of Fujian Anjoy i.e., Fujian Anjoy and AECC Aviation go up and down completely randomly.
Pair Corralation between Fujian Anjoy and AECC Aviation
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to generate 1.31 times more return on investment than AECC Aviation. However, Fujian Anjoy is 1.31 times more volatile than AECC Aviation Power. It trades about -0.19 of its potential returns per unit of risk. AECC Aviation Power is currently generating about -0.29 per unit of risk. If you would invest 9,486 in Fujian Anjoy Foods on October 9, 2024 and sell it today you would lose (1,626) from holding Fujian Anjoy Foods or give up 17.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Anjoy Foods vs. AECC Aviation Power
Performance |
| Timeline |
| Fujian Anjoy Foods |
| AECC Aviation Power |
Fujian Anjoy and AECC Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Anjoy and AECC Aviation
The main advantage of trading using opposite Fujian Anjoy and AECC Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy position performs unexpectedly, AECC Aviation 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 AECC Aviation will offset losses from the drop in AECC Aviation's 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 |
| AECC Aviation vs. Chengdu Kanghua Biological | AECC Aviation vs. Beijing Wantai Biological | AECC Aviation vs. Suzhou Novoprotein Scientific | AECC Aviation vs. Aluminum Corp of |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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