Correlation Between Guangdong Jingyi and Anji Foodstuff
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Anji Foodstuff Co, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Anji Foodstuff.
Diversification Opportunities for Guangdong Jingyi and Anji Foodstuff
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Anji is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Anji Foodstuff
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.05 times more return on investment than Anji Foodstuff. However, Guangdong Jingyi is 1.05 times more volatile than Anji Foodstuff Co. It trades about 0.03 of its potential returns per unit of risk. Anji Foodstuff Co is currently generating about 0.01 per unit of risk. If you would invest 638.00 in Guangdong Jingyi Metal on September 12, 2024 and sell it today you would earn a total of 126.00 from holding Guangdong Jingyi Metal or generate 19.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Anji Foodstuff Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Anji Foodstuff |
Guangdong Jingyi and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Anji Foodstuff
The main advantage of trading using opposite Guangdong Jingyi and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical Co |
| Anji Foodstuff vs. China Petroleum Chemical | Anji Foodstuff vs. PetroChina Co Ltd | Anji Foodstuff vs. China State Construction | Anji Foodstuff vs. China Railway Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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