Correlation Between Beijing Sanyuan and Anji Foodstuff
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Anji Foodstuff Co, you can compare the effects of market volatilities on Beijing Sanyuan 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 Beijing Sanyuan with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Anji Foodstuff.
Diversification Opportunities for Beijing Sanyuan and Anji Foodstuff
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Anji is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and Beijing Sanyuan 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 Beijing Sanyuan Foods 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 Beijing Sanyuan i.e., Beijing Sanyuan and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Anji Foodstuff
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to under-perform the Anji Foodstuff. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Sanyuan Foods is 1.38 times less risky than Anji Foodstuff. The stock trades about -0.28 of its potential returns per unit of risk. The Anji Foodstuff Co is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 885.00 in Anji Foodstuff Co on October 20, 2024 and sell it today you would lose (66.00) from holding Anji Foodstuff Co or give up 7.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Anji Foodstuff Co
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Anji Foodstuff |
Beijing Sanyuan and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Anji Foodstuff
The main advantage of trading using opposite Beijing Sanyuan and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan 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.| Beijing Sanyuan vs. Fibocom Wireless | Beijing Sanyuan vs. Emdoor Information Co | Beijing Sanyuan vs. Zhongfu Information | Beijing Sanyuan vs. Dawning Information Industry |
| Anji Foodstuff vs. Kweichow Moutai Co | Anji Foodstuff vs. NAURA Technology Group | Anji Foodstuff vs. Zhejiang Orient Gene | Anji Foodstuff vs. APT Medical |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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