Correlation Between Shandong Longquan and Anji Foodstuff
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By analyzing existing cross correlation between Shandong Longquan Pipeline and Anji Foodstuff Co, you can compare the effects of market volatilities on Shandong Longquan 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 Longquan with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Longquan and Anji Foodstuff.
Diversification Opportunities for Shandong Longquan and Anji Foodstuff
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Anji is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Longquan 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 Shandong Longquan 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 Longquan 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 Shandong Longquan i.e., Shandong Longquan and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Shandong Longquan and Anji Foodstuff
Assuming the 90 days trading horizon Shandong Longquan Pipeline is expected to generate 0.65 times more return on investment than Anji Foodstuff. However, Shandong Longquan Pipeline is 1.53 times less risky than Anji Foodstuff. It trades about 0.12 of its potential returns per unit of risk. Anji Foodstuff Co is currently generating about -0.07 per unit of risk. If you would invest 466.00 in Shandong Longquan Pipeline on October 25, 2024 and sell it today you would earn a total of 21.00 from holding Shandong Longquan Pipeline or generate 4.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Longquan Pipeline vs. Anji Foodstuff Co
Performance |
| Timeline |
| Shandong Longquan |
| Anji Foodstuff |
Shandong Longquan and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Longquan and Anji Foodstuff
The main advantage of trading using opposite Shandong Longquan and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Longquan 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 Longquan vs. Zijin Mining Group | Shandong Longquan vs. Wanhua Chemical Group | Shandong Longquan vs. Baoshan Iron Steel | Shandong Longquan vs. Rongsheng Petrochemical Co |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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