Correlation Between China Southern and Anji Foodstuff
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By analyzing existing cross correlation between China Southern Airlines and Anji Foodstuff Co, you can compare the effects of market volatilities on China Southern 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 Southern with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Southern and Anji Foodstuff.
Diversification Opportunities for China Southern and Anji Foodstuff
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Anji is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Southern Airlines 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 Southern 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 Southern Airlines 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 Southern i.e., China Southern and Anji Foodstuff go up and down completely randomly.
Pair Corralation between China Southern and Anji Foodstuff
Assuming the 90 days trading horizon China Southern Airlines is expected to under-perform the Anji Foodstuff. But the stock apears to be less risky and, when comparing its historical volatility, China Southern Airlines is 1.55 times less risky than Anji Foodstuff. The stock trades about -0.01 of its potential returns per unit of risk. The Anji Foodstuff Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,042 in Anji Foodstuff Co on September 4, 2024 and sell it today you would lose (165.00) from holding Anji Foodstuff Co or give up 15.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Southern Airlines vs. Anji Foodstuff Co
Performance |
| Timeline |
| China Southern Airlines |
| Anji Foodstuff |
China Southern and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Southern and Anji Foodstuff
The main advantage of trading using opposite China Southern and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Southern 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 Southern vs. Xiangyang Automobile Bearing | China Southern vs. Guangdong Marubi Biotechnology | China Southern vs. Jinhe Biotechnology Co | China Southern vs. Dongfeng Automobile Co |
| Anji Foodstuff vs. Sunwave Communications Co | Anji Foodstuff vs. Wuhan Yangtze Communication | Anji Foodstuff vs. Jiangxi Hengda Hi Tech | Anji Foodstuff vs. Shenzhen Zhongzhuang Construction |
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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