Correlation Between Jiugui Liquor and Anji Foodstuff
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By analyzing existing cross correlation between Jiugui Liquor Co and Anji Foodstuff Co, you can compare the effects of market volatilities on Jiugui Liquor and Anji Foodstuff 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 Jiugui Liquor with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Anji Foodstuff.
Diversification Opportunities for Jiugui Liquor and Anji Foodstuff
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiugui and Anji is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and Jiugui Liquor 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 Jiugui Liquor Co are associated (or correlated) with Anji Foodstuff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anji Foodstuff has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Anji Foodstuff
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the Anji Foodstuff. In addition to that, Jiugui Liquor is 1.02 times more volatile than Anji Foodstuff Co. It trades about -0.06 of its total potential returns per unit of risk. Anji Foodstuff Co is currently generating about -0.01 per unit of volatility. If you would invest 1,063 in Anji Foodstuff Co on August 31, 2024 and sell it today you would lose (219.00) from holding Anji Foodstuff Co or give up 20.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Anji Foodstuff Co
Performance |
| Timeline |
| Jiugui Liquor |
| Anji Foodstuff |
Jiugui Liquor and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Anji Foodstuff
The main advantage of trading using opposite Jiugui Liquor and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Anji Foodstuff 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 Anji Foodstuff will offset losses from the drop in Anji Foodstuff's long position.| Jiugui Liquor vs. Sichuan Fulin Transportation | Jiugui Liquor vs. China Asset Management | Jiugui Liquor vs. Sanbo Hospital Management | Jiugui Liquor vs. Northern United Publishing |
| Anji Foodstuff vs. Lutian Machinery Co | Anji Foodstuff vs. PetroChina Co Ltd | Anji Foodstuff vs. Bank of China | Anji Foodstuff vs. Gansu Jiu 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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