Correlation Between Hangzhou Weiguang and Anji Foodstuff
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By analyzing existing cross correlation between Hangzhou Weiguang Electronic and Anji Foodstuff Co, you can compare the effects of market volatilities on Hangzhou Weiguang 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 Hangzhou Weiguang with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Weiguang and Anji Foodstuff.
Diversification Opportunities for Hangzhou Weiguang and Anji Foodstuff
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Anji is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Weiguang Electronic and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and Hangzhou Weiguang 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 Hangzhou Weiguang Electronic 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 Hangzhou Weiguang i.e., Hangzhou Weiguang and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Hangzhou Weiguang and Anji Foodstuff
Assuming the 90 days trading horizon Hangzhou Weiguang Electronic is expected to generate 0.9 times more return on investment than Anji Foodstuff. However, Hangzhou Weiguang Electronic is 1.11 times less risky than Anji Foodstuff. It trades about 0.01 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 2,706 in Hangzhou Weiguang Electronic on October 22, 2024 and sell it today you would lose (200.00) from holding Hangzhou Weiguang Electronic or give up 7.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hangzhou Weiguang Electronic vs. Anji Foodstuff Co
Performance |
| Timeline |
| Hangzhou Weiguang |
| Anji Foodstuff |
Hangzhou Weiguang and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Weiguang and Anji Foodstuff
The main advantage of trading using opposite Hangzhou Weiguang and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Weiguang 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.| Hangzhou Weiguang vs. HeNan Splendor Science | Hangzhou Weiguang vs. Tongding Interconnection Information | Hangzhou Weiguang vs. Nanjing Canatal Data | Hangzhou Weiguang vs. Unisplendour Corp |
| Anji Foodstuff vs. Hubei Yingtong Telecommunication | Anji Foodstuff vs. Eastern Communications Co | Anji Foodstuff vs. Tinavi Medical Technologies | Anji Foodstuff vs. Chison Medical Technologies |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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