Correlation Between China Aluminum and Anji Foodstuff
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By analyzing existing cross correlation between China Aluminum International and Anji Foodstuff Co, you can compare the effects of market volatilities on China Aluminum 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 Aluminum with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aluminum and Anji Foodstuff.
Diversification Opportunities for China Aluminum and Anji Foodstuff
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Anji is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding China Aluminum International 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 Aluminum 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 Aluminum International 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 Aluminum i.e., China Aluminum and Anji Foodstuff go up and down completely randomly.
Pair Corralation between China Aluminum and Anji Foodstuff
Assuming the 90 days trading horizon China Aluminum International is expected to under-perform the Anji Foodstuff. But the stock apears to be less risky and, when comparing its historical volatility, China Aluminum International is 2.31 times less risky than Anji Foodstuff. The stock trades about -0.05 of its potential returns per unit of risk. The Anji Foodstuff Co is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 819.00 in Anji Foodstuff Co on September 13, 2024 and sell it today you would earn a total of 302.00 from holding Anji Foodstuff Co or generate 36.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aluminum International vs. Anji Foodstuff Co
Performance |
| Timeline |
| China Aluminum Inter |
| Anji Foodstuff |
China Aluminum and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aluminum and Anji Foodstuff
The main advantage of trading using opposite China Aluminum and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aluminum 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 Aluminum vs. Ming Yang Smart | China Aluminum vs. 159681 | China Aluminum vs. 159005 | China Aluminum vs. Loctek Ergonomic Technology |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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