Correlation Between Anji Foodstuff and Fiberhome Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anji Foodstuff Co and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Anji Foodstuff and Fiberhome Telecommunicatio 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 Anji Foodstuff with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Fiberhome Telecommunicatio.
Diversification Opportunities for Anji Foodstuff and Fiberhome Telecommunicatio
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anji and Fiberhome is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Anji Foodstuff 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 Anji Foodstuff Co are associated (or correlated) with Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to under-perform the Fiberhome Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, Anji Foodstuff Co is 1.01 times less risky than Fiberhome Telecommunicatio. The stock trades about 0.0 of its potential returns per unit of risk. The Fiberhome Telecommunication Technologies is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,601 in Fiberhome Telecommunication Technologies on November 9, 2024 and sell it today you would earn a total of 393.00 from holding Fiberhome Telecommunication Technologies or generate 24.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Anji Foodstuff |
Risk-Adjusted Performance
Weak
Weak | Strong |
| Fiberhome Telecommunicatio |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Anji Foodstuff and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Fiberhome Telecommunicatio
The main advantage of trading using opposite Anji Foodstuff and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.The idea behind Anji Foodstuff Co and Fiberhome Telecommunication Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |