Correlation Between China State and Anji Foodstuff
Specify exactly 2 symbols:
By analyzing existing cross correlation between China State Construction and Anji Foodstuff Co, you can compare the effects of market volatilities on China State 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 State with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Anji Foodstuff.
Diversification Opportunities for China State and Anji Foodstuff
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Anji is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 State 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 State Construction 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 State i.e., China State and Anji Foodstuff go up and down completely randomly.
Pair Corralation between China State and Anji Foodstuff
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Anji Foodstuff. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 1.1 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 0.2 of returns per unit of risk over similar time horizon. If you would invest 769.00 in Anji Foodstuff Co on August 31, 2024 and sell it today you would earn a total of 75.00 from holding Anji Foodstuff Co or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Anji Foodstuff Co
Performance |
| Timeline |
| China State Construction |
| Anji Foodstuff |
China State and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Anji Foodstuff
The main advantage of trading using opposite China State and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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 State vs. Guangdong Wens Foodstuff | China State vs. Great Sun Foods Co | China State vs. Tianjin Pengling Rubber | China State vs. Suzhou Xingye Material |
| Anji Foodstuff vs. Lutian Machinery Co | Anji Foodstuff vs. PetroChina Co Ltd | Anji Foodstuff vs. Bank of China | Anji Foodstuff vs. Gansu Jiu Steel |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |