Correlation Between Fujian Anjoy and Beijing Wantai
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By analyzing existing cross correlation between Fujian Anjoy Foods and Beijing Wantai Biological, you can compare the effects of market volatilities on Fujian Anjoy and Beijing Wantai 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 Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and Beijing Wantai.
Diversification Opportunities for Fujian Anjoy and Beijing Wantai
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Beijing is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy Foods and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological 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 Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Fujian Anjoy i.e., Fujian Anjoy and Beijing Wantai go up and down completely randomly.
Pair Corralation between Fujian Anjoy and Beijing Wantai
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to under-perform the Beijing Wantai. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Anjoy Foods is 1.15 times less risky than Beijing Wantai. The stock trades about -0.04 of its potential returns per unit of risk. The Beijing Wantai Biological is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 9,992 in Beijing Wantai Biological on September 3, 2024 and sell it today you would lose (2,698) from holding Beijing Wantai Biological or give up 27.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Anjoy Foods vs. Beijing Wantai Biological
Performance |
| Timeline |
| Fujian Anjoy Foods |
| Beijing Wantai Biological |
Fujian Anjoy and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Anjoy and Beijing Wantai
The main advantage of trading using opposite Fujian Anjoy and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai's long position.| Fujian Anjoy vs. Beijing Wantai Biological | Fujian Anjoy vs. Aluminum Corp of | Fujian Anjoy vs. COL Digital Publishing | Fujian Anjoy vs. Shaanxi Meineng Clean |
| Beijing Wantai vs. Cofoe Medical Technology | Beijing Wantai vs. Guangzhou Boji Medical | Beijing Wantai vs. Qingdao Baheal Medical | Beijing Wantai vs. Double Medical Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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