Correlation Between FUJIAN AONONG and Moderna

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Can any of the company-specific risk be diversified away by investing in both FUJIAN AONONG and Moderna at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining FUJIAN AONONG and Moderna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUJIAN AONONG BIOLOGICAL and Moderna, you can compare the effects of market volatilities on FUJIAN AONONG and Moderna 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 FUJIAN AONONG with a short position of Moderna. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUJIAN AONONG and Moderna.

Diversification Opportunities for FUJIAN AONONG and Moderna

0.23
  Correlation Coefficient

Modest diversification

The 3 months correlation between FUJIAN and Moderna is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding FUJIAN AONONG BIOLOGICAL TECHN and Moderna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderna and FUJIAN AONONG 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 FUJIAN AONONG BIOLOGICAL are associated (or correlated) with Moderna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderna has no effect on the direction of FUJIAN AONONG i.e., FUJIAN AONONG and Moderna go up and down completely randomly.

Pair Corralation between FUJIAN AONONG and Moderna

Assuming the 90 days trading horizon FUJIAN AONONG BIOLOGICAL is expected to generate 1.16 times more return on investment than Moderna. However, FUJIAN AONONG is 1.16 times more volatile than Moderna. It trades about 0.07 of its potential returns per unit of risk. Moderna is currently generating about -0.05 per unit of risk. If you would invest  1,512  in FUJIAN AONONG BIOLOGICAL on April 4, 2022 and sell it today you would earn a total of  410.00  from holding FUJIAN AONONG BIOLOGICAL or generate 27.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy76.8%
ValuesDaily Returns

FUJIAN AONONG BIOLOGICAL TECHN  vs.  Moderna

 Performance (%) 
      Timeline 
FUJIAN AONONG BIOLOG 
FUJIAN Performance
0 of 100
Over the last 90 days FUJIAN AONONG BIOLOGICAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

FUJIAN Price Channel

Moderna 
Moderna Performance
0 of 100
Over the last 90 days Moderna has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Moderna Price Channel

FUJIAN AONONG and Moderna Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with FUJIAN AONONG and Moderna

The main advantage of trading using opposite FUJIAN AONONG and Moderna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUJIAN AONONG position performs unexpectedly, Moderna 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 Moderna will offset losses from the drop in Moderna's long position.
The idea behind FUJIAN AONONG BIOLOGICAL and Moderna 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.

Moderna

Pair trading matchups for Moderna

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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