Correlation Between Suzhou Xingye and Fujian Anjoy
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By analyzing existing cross correlation between Suzhou Xingye Material and Fujian Anjoy Foods, you can compare the effects of market volatilities on Suzhou Xingye and Fujian Anjoy 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 Suzhou Xingye with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Fujian Anjoy.
Diversification Opportunities for Suzhou Xingye and Fujian Anjoy
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Fujian is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material and Fujian Anjoy Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Anjoy Foods and Suzhou Xingye 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 Suzhou Xingye Material are associated (or correlated) with Fujian Anjoy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Anjoy Foods has no effect on the direction of Suzhou Xingye i.e., Suzhou Xingye and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Fujian Anjoy
Assuming the 90 days trading horizon Suzhou Xingye Material is expected to under-perform the Fujian Anjoy. In addition to that, Suzhou Xingye is 1.1 times more volatile than Fujian Anjoy Foods. It trades about 0.0 of its total potential returns per unit of risk. Fujian Anjoy Foods is currently generating about 0.02 per unit of volatility. If you would invest 8,483 in Fujian Anjoy Foods on September 5, 2024 and sell it today you would earn a total of 282.00 from holding Fujian Anjoy Foods or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Xingye Material vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Suzhou Xingye Material |
| Fujian Anjoy Foods |
Suzhou Xingye and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Xingye and Fujian Anjoy
The main advantage of trading using opposite Suzhou Xingye and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye position performs unexpectedly, Fujian Anjoy 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 Anjoy will offset losses from the drop in Fujian Anjoy's long position.| Suzhou Xingye vs. Zijin Mining Group | Suzhou Xingye vs. Wanhua Chemical Group | Suzhou Xingye vs. Baoshan Iron Steel | Suzhou Xingye vs. Rongsheng Petrochemical Co |
| Fujian Anjoy vs. Suzhou Xingye Material | Fujian Anjoy vs. Jiangxi Naipu Mining | Fujian Anjoy vs. Pengxin International Mining | Fujian Anjoy vs. Sinosteel Luonai Materials |
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 Stocks Directory module to find actively traded stocks across global markets.
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