Correlation Between Anhui Transport and Fujian Newland
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Transport Consulting and Fujian Newland Computer, you can compare the effects of market volatilities on Anhui Transport and Fujian Newland 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 Anhui Transport with a short position of Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Fujian Newland.
Diversification Opportunities for Anhui Transport and Fujian Newland
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Fujian is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer and Anhui Transport 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 Anhui Transport Consulting are associated (or correlated) with Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Anhui Transport i.e., Anhui Transport and Fujian Newland go up and down completely randomly.
Pair Corralation between Anhui Transport and Fujian Newland
Assuming the 90 days trading horizon Anhui Transport is expected to generate 1.77 times less return on investment than Fujian Newland. In addition to that, Anhui Transport is 1.02 times more volatile than Fujian Newland Computer. It trades about 0.02 of its total potential returns per unit of risk. Fujian Newland Computer is currently generating about 0.04 per unit of volatility. If you would invest 1,362 in Fujian Newland Computer on October 16, 2024 and sell it today you would earn a total of 537.00 from holding Fujian Newland Computer or generate 39.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Fujian Newland Computer
Performance |
| Timeline |
| Anhui Transport Cons |
| Fujian Newland Computer |
Anhui Transport and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Fujian Newland
The main advantage of trading using opposite Anhui Transport and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Fujian Newland 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 Fujian Newland will offset losses from the drop in Fujian Newland's long position.| Anhui Transport vs. Allied Machinery Co | Anhui Transport vs. Hunan Tyen Machinery | Anhui Transport vs. CareRay Digital Medical | Anhui Transport vs. Xiangyu Medical Co |
| Fujian Newland vs. Shanghai V Test Semiconductor | Fujian Newland vs. GRINM Semiconductor Materials | Fujian Newland vs. Southchip Semiconductor Technology | Fujian Newland vs. Giantec Semiconductor Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |