Correlation Between Fujian Anjoy and Zoy Home
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By analyzing existing cross correlation between Fujian Anjoy Foods and Zoy Home Furnishing, you can compare the effects of market volatilities on Fujian Anjoy and Zoy Home 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 Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and Zoy Home.
Diversification Opportunities for Fujian Anjoy and Zoy Home
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fujian and Zoy is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy Foods and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing 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 Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of Fujian Anjoy i.e., Fujian Anjoy and Zoy Home go up and down completely randomly.
Pair Corralation between Fujian Anjoy and Zoy Home
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to under-perform the Zoy Home. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Anjoy Foods is 2.11 times less risky than Zoy Home. The stock trades about -0.25 of its potential returns per unit of risk. The Zoy Home Furnishing is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,090 in Zoy Home Furnishing on October 28, 2024 and sell it today you would earn a total of 36.00 from holding Zoy Home Furnishing or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Anjoy Foods vs. Zoy Home Furnishing
Performance |
| Timeline |
| Fujian Anjoy Foods |
| Zoy Home Furnishing |
Fujian Anjoy and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Anjoy and Zoy Home
The main advantage of trading using opposite Fujian Anjoy and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home's long position.| Fujian Anjoy vs. Kweichow Moutai Co | Fujian Anjoy vs. Contemporary Amperex Technology | Fujian Anjoy vs. G bits Network Technology | Fujian Anjoy vs. Beijing Roborock Technology |
| Zoy Home vs. ROPEOK Technology Group | Zoy Home vs. Western Metal Materials | Zoy Home vs. Shandong Hongchuang Aluminum | Zoy Home vs. Chongqing Shunbo Aluminum |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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