Correlation Between 159005 and Anji Foodstuff
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By analyzing existing cross correlation between 159005 and Anji Foodstuff Co, you can compare the effects of market volatilities on 159005 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 159005 with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Anji Foodstuff.
Diversification Opportunities for 159005 and Anji Foodstuff
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159005 and Anji is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and 159005 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 159005 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 159005 i.e., 159005 and Anji Foodstuff go up and down completely randomly.
Pair Corralation between 159005 and Anji Foodstuff
Assuming the 90 days trading horizon 159005 is expected to generate 3.36 times less return on investment than Anji Foodstuff. But when comparing it to its historical volatility, 159005 is 121.77 times less risky than Anji Foodstuff. It trades about 0.15 of its potential returns per unit of risk. Anji Foodstuff Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 941.00 in Anji Foodstuff Co on September 25, 2024 and sell it today you would lose (101.00) from holding Anji Foodstuff Co or give up 10.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Anji Foodstuff Co
Performance |
| Timeline |
| 159005 |
| Anji Foodstuff |
159005 and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Anji Foodstuff
The main advantage of trading using opposite 159005 and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 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.The idea behind 159005 and Anji Foodstuff Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Anji Foodstuff vs. Ming Yang Smart | Anji Foodstuff vs. 159681 | Anji Foodstuff vs. 159005 | Anji Foodstuff vs. Loctek Ergonomic Technology |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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