Correlation Between HeNan Splendor and Anji Foodstuff
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By analyzing existing cross correlation between HeNan Splendor Science and Anji Foodstuff Co, you can compare the effects of market volatilities on HeNan Splendor 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 HeNan Splendor with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Anji Foodstuff.
Diversification Opportunities for HeNan Splendor and Anji Foodstuff
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HeNan and Anji is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and HeNan Splendor 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 HeNan Splendor Science 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 HeNan Splendor i.e., HeNan Splendor and Anji Foodstuff go up and down completely randomly.
Pair Corralation between HeNan Splendor and Anji Foodstuff
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 1.1 times more return on investment than Anji Foodstuff. However, HeNan Splendor is 1.1 times more volatile than Anji Foodstuff Co. It trades about 0.02 of its potential returns per unit of risk. Anji Foodstuff Co is currently generating about 0.0 per unit of risk. If you would invest 903.00 in HeNan Splendor Science on October 23, 2024 and sell it today you would earn a total of 37.00 from holding HeNan Splendor Science or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Anji Foodstuff Co
Performance |
| Timeline |
| HeNan Splendor Science |
| Anji Foodstuff |
HeNan Splendor and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Anji Foodstuff
The main advantage of trading using opposite HeNan Splendor and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor 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.| HeNan Splendor vs. Guangzhou Zhujiang Brewery | HeNan Splendor vs. Thinkon Semiconductor Jinzhou | HeNan Splendor vs. GRINM Semiconductor Materials | HeNan Splendor vs. Lontium Semiconductor Corp |
| Anji Foodstuff vs. Jinhui Liquor Co | Anji Foodstuff vs. Rising Nonferrous Metals | Anji Foodstuff vs. Western Metal Materials | Anji Foodstuff vs. Guangdong Jingyi Metal |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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