Correlation Between Fujian Anjoy and Huaibei Mining
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By analyzing existing cross correlation between Fujian Anjoy Foods and Huaibei Mining Holdings, you can compare the effects of market volatilities on Fujian Anjoy and Huaibei Mining 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 Huaibei Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and Huaibei Mining.
Diversification Opportunities for Fujian Anjoy and Huaibei Mining
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Huaibei is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy Foods and Huaibei Mining Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaibei Mining Holdings 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 Huaibei Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaibei Mining Holdings has no effect on the direction of Fujian Anjoy i.e., Fujian Anjoy and Huaibei Mining go up and down completely randomly.
Pair Corralation between Fujian Anjoy and Huaibei Mining
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to generate 1.32 times more return on investment than Huaibei Mining. However, Fujian Anjoy is 1.32 times more volatile than Huaibei Mining Holdings. It trades about 0.13 of its potential returns per unit of risk. Huaibei Mining Holdings is currently generating about 0.09 per unit of risk. If you would invest 6,999 in Fujian Anjoy Foods on September 12, 2024 and sell it today you would earn a total of 1,954 from holding Fujian Anjoy Foods or generate 27.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Anjoy Foods vs. Huaibei Mining Holdings
Performance |
| Timeline |
| Fujian Anjoy Foods |
| Huaibei Mining Holdings |
Fujian Anjoy and Huaibei Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Anjoy and Huaibei Mining
The main advantage of trading using opposite Fujian Anjoy and Huaibei Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy position performs unexpectedly, Huaibei Mining 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 Huaibei Mining will offset losses from the drop in Huaibei Mining's long position.| Fujian Anjoy vs. Nanjing Putian Telecommunications | Fujian Anjoy vs. Tianjin Realty Development | Fujian Anjoy vs. Kangyue Technology Co | Fujian Anjoy vs. Shenzhen Hifuture Electric |
| Huaibei Mining vs. Zijin Mining Group | Huaibei Mining vs. Wanhua Chemical Group | Huaibei Mining vs. Baoshan Iron Steel | Huaibei Mining vs. Shandong Gold Mining |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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