Correlation Between Jiangxi JDL and Fujian Anjoy
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By analyzing existing cross correlation between Jiangxi JDL Environmental and Fujian Anjoy Foods, you can compare the effects of market volatilities on Jiangxi JDL 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 Jiangxi JDL with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi JDL and Fujian Anjoy.
Diversification Opportunities for Jiangxi JDL and Fujian Anjoy
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Fujian is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi JDL Environmental 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 Jiangxi JDL 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 Jiangxi JDL Environmental 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 Jiangxi JDL i.e., Jiangxi JDL and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Jiangxi JDL and Fujian Anjoy
Assuming the 90 days trading horizon Jiangxi JDL Environmental is expected to generate 0.84 times more return on investment than Fujian Anjoy. However, Jiangxi JDL Environmental is 1.19 times less risky than Fujian Anjoy. It trades about 0.0 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.01 per unit of risk. If you would invest 1,351 in Jiangxi JDL Environmental on September 14, 2024 and sell it today you would lose (103.00) from holding Jiangxi JDL Environmental or give up 7.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi JDL Environmental vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Jiangxi JDL Environmental |
| Fujian Anjoy Foods |
Jiangxi JDL and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi JDL and Fujian Anjoy
The main advantage of trading using opposite Jiangxi JDL and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi JDL 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.| Jiangxi JDL vs. Lutian Machinery Co | Jiangxi JDL vs. China Longyuan Power | Jiangxi JDL vs. PetroChina Co Ltd | Jiangxi JDL vs. Bank of China |
| Fujian Anjoy vs. Jiangxi JDL Environmental | Fujian Anjoy vs. Hainan Haiqi Transportation | Fujian Anjoy vs. Changjiang Jinggong Steel | Fujian Anjoy vs. Anyang Iron Steel |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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