Correlation Between XinJiang GuoTong and Anji Foodstuff
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Anji Foodstuff Co, you can compare the effects of market volatilities on XinJiang GuoTong 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 XinJiang GuoTong with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Anji Foodstuff.
Diversification Opportunities for XinJiang GuoTong and Anji Foodstuff
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XinJiang and Anji is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and XinJiang GuoTong 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 XinJiang GuoTong Pipeline 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 XinJiang GuoTong i.e., XinJiang GuoTong and Anji Foodstuff go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Anji Foodstuff
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to under-perform the Anji Foodstuff. In addition to that, XinJiang GuoTong is 1.28 times more volatile than Anji Foodstuff Co. It trades about -0.16 of its total potential returns per unit of risk. Anji Foodstuff Co is currently generating about -0.07 per unit of volatility. If you would invest 863.00 in Anji Foodstuff Co on October 25, 2024 and sell it today you would lose (43.00) from holding Anji Foodstuff Co or give up 4.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Anji Foodstuff Co
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Anji Foodstuff |
XinJiang GuoTong and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Anji Foodstuff
The main advantage of trading using opposite XinJiang GuoTong and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong 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.| XinJiang GuoTong vs. Kweichow Moutai Co | XinJiang GuoTong vs. Contemporary Amperex Technology | XinJiang GuoTong vs. Beijing Roborock Technology | XinJiang GuoTong vs. BYD Co Ltd |
| Anji Foodstuff vs. Sportsoul Co Ltd | Anji Foodstuff vs. Guilin Seamild Foods | Anji Foodstuff vs. V V Food | Anji Foodstuff vs. Xiangpiaopiao Food Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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