Correlation Between Jiangxi Hengda and Anji Foodstuff
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Anji Foodstuff Co, you can compare the effects of market volatilities on Jiangxi Hengda 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 Jiangxi Hengda with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Anji Foodstuff.
Diversification Opportunities for Jiangxi Hengda and Anji Foodstuff
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Anji is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and Jiangxi Hengda 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 Jiangxi Hengda Hi Tech 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 Jiangxi Hengda i.e., Jiangxi Hengda and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Anji Foodstuff
Assuming the 90 days trading horizon Jiangxi Hengda is expected to generate 1.47 times less return on investment than Anji Foodstuff. In addition to that, Jiangxi Hengda is 1.19 times more volatile than Anji Foodstuff Co. It trades about 0.01 of its total potential returns per unit of risk. Anji Foodstuff Co is currently generating about 0.02 per unit of volatility. If you would invest 948.00 in Anji Foodstuff Co on September 12, 2024 and sell it today you would earn a total of 39.00 from holding Anji Foodstuff Co or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Anji Foodstuff Co
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Anji Foodstuff |
Jiangxi Hengda and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Anji Foodstuff
The main advantage of trading using opposite Jiangxi Hengda and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda 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.| Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Wanhua Chemical Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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