Correlation Between Shandong Mining and Anji Foodstuff
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By analyzing existing cross correlation between Shandong Mining Machinery and Anji Foodstuff Co, you can compare the effects of market volatilities on Shandong Mining 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 Shandong Mining with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Anji Foodstuff.
Diversification Opportunities for Shandong Mining and Anji Foodstuff
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Anji is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and Shandong Mining 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 Shandong Mining Machinery 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 Shandong Mining i.e., Shandong Mining and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Shandong Mining and Anji Foodstuff
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 1.04 times more return on investment than Anji Foodstuff. However, Shandong Mining is 1.04 times more volatile than Anji Foodstuff Co. It trades about 0.06 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 230.00 in Shandong Mining Machinery on September 4, 2024 and sell it today you would earn a total of 166.00 from holding Shandong Mining Machinery or generate 72.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Mining Machinery vs. Anji Foodstuff Co
Performance |
| Timeline |
| Shandong Mining Machinery |
| Anji Foodstuff |
Shandong Mining and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Anji Foodstuff
The main advantage of trading using opposite Shandong Mining and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining 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.| Shandong Mining vs. Xinjiang Communications Construction | Shandong Mining vs. Nanjing Putian Telecommunications | Shandong Mining vs. Jonjee Hi tech Industrial | Shandong Mining vs. Zoje Resources Investment |
| Anji Foodstuff vs. Sunwave Communications Co | Anji Foodstuff vs. Wuhan Yangtze Communication | Anji Foodstuff vs. Jiangxi Hengda Hi Tech | Anji Foodstuff vs. Shenzhen Zhongzhuang Construction |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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