Correlation Between Kangyue Technology and Anji Foodstuff
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By analyzing existing cross correlation between Kangyue Technology Co and Anji Foodstuff Co, you can compare the effects of market volatilities on Kangyue Technology 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 Kangyue Technology with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Anji Foodstuff.
Diversification Opportunities for Kangyue Technology and Anji Foodstuff
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kangyue and Anji is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and Kangyue Technology 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 Kangyue Technology Co 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 Kangyue Technology i.e., Kangyue Technology and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Kangyue Technology and Anji Foodstuff
Assuming the 90 days trading horizon Kangyue Technology Co is expected to under-perform the Anji Foodstuff. In addition to that, Kangyue Technology is 1.01 times more volatile than Anji Foodstuff Co. It trades about -0.04 of its total potential returns per unit of risk. Anji Foodstuff Co is currently generating about 0.28 per unit of volatility. If you would invest 796.00 in Anji Foodstuff Co on September 15, 2024 and sell it today you would earn a total of 213.00 from holding Anji Foodstuff Co or generate 26.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangyue Technology Co vs. Anji Foodstuff Co
Performance |
| Timeline |
| Kangyue Technology |
| Anji Foodstuff |
Kangyue Technology and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Anji Foodstuff
The main advantage of trading using opposite Kangyue Technology and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology 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.| Kangyue Technology vs. Hangzhou Coco Healthcare | Kangyue Technology vs. Hangzhou Weiguang Electronic | Kangyue Technology vs. Nantong Haixing Electronics | Kangyue Technology vs. Shandong Sinoglory Health |
| Anji Foodstuff vs. Nanjing Putian Telecommunications | Anji Foodstuff vs. Tianjin Realty Development | Anji Foodstuff vs. Kangyue Technology Co | Anji Foodstuff vs. Shenzhen Hifuture Electric |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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