Correlation Between Changchun BCHT and Fujian Anjoy
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and Fujian Anjoy Foods, you can compare the effects of market volatilities on Changchun BCHT 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 Changchun BCHT with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and Fujian Anjoy.
Diversification Opportunities for Changchun BCHT and Fujian Anjoy
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and Fujian is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology 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 Changchun BCHT 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 Changchun BCHT Biotechnology 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 Changchun BCHT i.e., Changchun BCHT and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Changchun BCHT and Fujian Anjoy
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the Fujian Anjoy. But the stock apears to be less risky and, when comparing its historical volatility, Changchun BCHT Biotechnology is 1.27 times less risky than Fujian Anjoy. The stock trades about -0.35 of its potential returns per unit of risk. The Fujian Anjoy Foods is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 8,283 in Fujian Anjoy Foods on October 10, 2024 and sell it today you would lose (564.00) from holding Fujian Anjoy Foods or give up 6.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Changchun BCHT Biote |
| Fujian Anjoy Foods |
Changchun BCHT and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and Fujian Anjoy
The main advantage of trading using opposite Changchun BCHT and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT 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.| Changchun BCHT vs. Semiconductor Manufacturing Intl | Changchun BCHT vs. Hunan Investment Group | Changchun BCHT vs. Shanghai V Test Semiconductor | Changchun BCHT vs. StarPower Semiconductor |
| Fujian Anjoy vs. Semiconductor Manufacturing Electronics | Fujian Anjoy vs. Mango Excellent Media | Fujian Anjoy vs. Fuzhou Rockchip Electronics | Fujian Anjoy vs. YiDong Electronics Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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