Correlation Between Changjiang Publishing and Anji Foodstuff
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By analyzing existing cross correlation between Changjiang Publishing Media and Anji Foodstuff Co, you can compare the effects of market volatilities on Changjiang Publishing 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 Changjiang Publishing with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and Anji Foodstuff.
Diversification Opportunities for Changjiang Publishing and Anji Foodstuff
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Changjiang and Anji is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and Changjiang Publishing 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 Changjiang Publishing Media 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 Changjiang Publishing i.e., Changjiang Publishing and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Changjiang Publishing and Anji Foodstuff
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to under-perform the Anji Foodstuff. But the stock apears to be less risky and, when comparing its historical volatility, Changjiang Publishing Media is 1.53 times less risky than Anji Foodstuff. The stock trades about -0.2 of its potential returns per unit of risk. The Anji Foodstuff Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 830.00 in Anji Foodstuff Co on October 30, 2024 and sell it today you would lose (22.00) from holding Anji Foodstuff Co or give up 2.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. Anji Foodstuff Co
Performance |
| Timeline |
| Changjiang Publishing |
| Anji Foodstuff |
Changjiang Publishing and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and Anji Foodstuff
The main advantage of trading using opposite Changjiang Publishing and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing 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 Changjiang Publishing Media 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.
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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