Correlation Between Shenzhen Zhongzhuang and Anji Foodstuff
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By analyzing existing cross correlation between Shenzhen Zhongzhuang Construction and Anji Foodstuff Co, you can compare the effects of market volatilities on Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhongzhuang and Anji Foodstuff.
Diversification Opportunities for Shenzhen Zhongzhuang and Anji Foodstuff
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Anji is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhongzhuang Construct and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang Construction 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 Shenzhen Zhongzhuang i.e., Shenzhen Zhongzhuang and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Shenzhen Zhongzhuang and Anji Foodstuff
Assuming the 90 days trading horizon Shenzhen Zhongzhuang is expected to generate 1.15 times less return on investment than Anji Foodstuff. In addition to that, Shenzhen Zhongzhuang is 1.23 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Zhongzhuang Construct vs. Anji Foodstuff Co
Performance |
| Timeline |
| Shenzhen Zhongzhuang |
| Anji Foodstuff |
Shenzhen Zhongzhuang and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Zhongzhuang and Anji Foodstuff
The main advantage of trading using opposite Shenzhen Zhongzhuang and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhongzhuang 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.| Shenzhen Zhongzhuang vs. Agricultural Bank of | Shenzhen Zhongzhuang vs. Industrial and Commercial | Shenzhen Zhongzhuang vs. Bank of China | Shenzhen Zhongzhuang vs. PetroChina Co Ltd |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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