Correlation Between China Petroleum and Anji Foodstuff
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By analyzing existing cross correlation between China Petroleum Chemical and Anji Foodstuff Co, you can compare the effects of market volatilities on China Petroleum 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 China Petroleum with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Anji Foodstuff.
Diversification Opportunities for China Petroleum and Anji Foodstuff
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Anji is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and China Petroleum 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 China Petroleum Chemical 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 China Petroleum i.e., China Petroleum and Anji Foodstuff go up and down completely randomly.
Pair Corralation between China Petroleum and Anji Foodstuff
Assuming the 90 days trading horizon China Petroleum Chemical is expected to under-perform the Anji Foodstuff. But the stock apears to be less risky and, when comparing its historical volatility, China Petroleum Chemical is 1.58 times less risky than Anji Foodstuff. The stock trades about -0.06 of its potential returns per unit of risk. The Anji Foodstuff Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 737.00 in Anji Foodstuff Co on August 28, 2024 and sell it today you would earn a total of 70.00 from holding Anji Foodstuff Co or generate 9.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Anji Foodstuff Co
Performance |
| Timeline |
| China Petroleum Chemical |
| Anji Foodstuff |
China Petroleum and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Anji Foodstuff
The main advantage of trading using opposite China Petroleum and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum 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.| China Petroleum vs. Winner Medical Co | China Petroleum vs. Jiujiang Shanshui Technology | China Petroleum vs. Northking Information Technology | China Petroleum vs. Tianshui Huatian Technology |
| 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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