Correlation Between 159681 and Fujian Anjoy
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By analyzing existing cross correlation between 159681 and Fujian Anjoy Foods, you can compare the effects of market volatilities on 159681 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 159681 with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Fujian Anjoy.
Diversification Opportunities for 159681 and Fujian Anjoy
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and Fujian is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding 159681 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 159681 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 159681 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 159681 i.e., 159681 and Fujian Anjoy go up and down completely randomly.
Pair Corralation between 159681 and Fujian Anjoy
Assuming the 90 days trading horizon 159681 is expected to generate 1.54 times more return on investment than Fujian Anjoy. However, 159681 is 1.54 times more volatile than Fujian Anjoy Foods. It trades about 0.11 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 74.00 in 159681 on September 26, 2024 and sell it today you would earn a total of 23.00 from holding 159681 or generate 31.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
159681 vs. Fujian Anjoy Foods
Performance |
Timeline |
159681 |
Fujian Anjoy Foods |
159681 and Fujian Anjoy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 159681 and Fujian Anjoy
The main advantage of trading using opposite 159681 and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 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.The idea behind 159681 and Fujian Anjoy Foods 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.Fujian Anjoy vs. Ming Yang Smart | Fujian Anjoy vs. 159681 | Fujian Anjoy vs. 159005 | Fujian Anjoy vs. Loctek Ergonomic 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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