Correlation Between Ningbo Construction and Anji Foodstuff
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By analyzing existing cross correlation between Ningbo Construction Co and Anji Foodstuff Co, you can compare the effects of market volatilities on Ningbo Construction 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 Ningbo Construction with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Construction and Anji Foodstuff.
Diversification Opportunities for Ningbo Construction and Anji Foodstuff
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Anji is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Construction Co and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and Ningbo Construction 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 Ningbo Construction Co 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 Ningbo Construction i.e., Ningbo Construction and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Ningbo Construction and Anji Foodstuff
Assuming the 90 days trading horizon Ningbo Construction Co is expected to generate 1.58 times more return on investment than Anji Foodstuff. However, Ningbo Construction is 1.58 times more volatile than Anji Foodstuff Co. It trades about 0.11 of its potential returns per unit of risk. Anji Foodstuff Co is currently generating about 0.07 per unit of risk. If you would invest 441.00 in Ningbo Construction Co on September 4, 2024 and sell it today you would earn a total of 67.00 from holding Ningbo Construction Co or generate 15.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Construction Co vs. Anji Foodstuff Co
Performance |
| Timeline |
| Ningbo Construction |
| Anji Foodstuff |
Ningbo Construction and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Construction and Anji Foodstuff
The main advantage of trading using opposite Ningbo Construction and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Construction 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.| Ningbo Construction vs. China Life Insurance | Ningbo Construction vs. Cinda Securities Co | Ningbo Construction vs. Piotech Inc A | Ningbo Construction vs. Dongxing Sec 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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