Correlation Between Sinosteel Luonai and Fujian Anjoy
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By analyzing existing cross correlation between Sinosteel Luonai Materials and Fujian Anjoy Foods, you can compare the effects of market volatilities on Sinosteel Luonai 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 Sinosteel Luonai with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Luonai and Fujian Anjoy.
Diversification Opportunities for Sinosteel Luonai and Fujian Anjoy
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinosteel and Fujian is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Luonai Materials 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 Sinosteel Luonai 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 Sinosteel Luonai Materials 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 Sinosteel Luonai i.e., Sinosteel Luonai and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Sinosteel Luonai and Fujian Anjoy
Assuming the 90 days trading horizon Sinosteel Luonai Materials is expected to generate 0.92 times more return on investment than Fujian Anjoy. However, Sinosteel Luonai Materials is 1.09 times less risky than Fujian Anjoy. It trades about -0.03 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.04 per unit of risk. If you would invest 657.00 in Sinosteel Luonai Materials on September 5, 2024 and sell it today you would lose (221.00) from holding Sinosteel Luonai Materials or give up 33.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Sinosteel Luonai Materials vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Sinosteel Luonai Mat |
| Fujian Anjoy Foods |
Sinosteel Luonai and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Luonai and Fujian Anjoy
The main advantage of trading using opposite Sinosteel Luonai and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Luonai 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.| Sinosteel Luonai vs. Shandong Publishing Media | Sinosteel Luonai vs. Eastern Communications Co | Sinosteel Luonai vs. Sinomach Automobile Co | Sinosteel Luonai vs. Xinjiang Communications Construction |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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