Correlation Between Sichuan Teway and Anji Foodstuff
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By analyzing existing cross correlation between Sichuan Teway Food and Anji Foodstuff Co, you can compare the effects of market volatilities on Sichuan Teway 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 Sichuan Teway with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Teway and Anji Foodstuff.
Diversification Opportunities for Sichuan Teway and Anji Foodstuff
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Anji is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Teway Food and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and Sichuan Teway 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 Sichuan Teway Food 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 Sichuan Teway i.e., Sichuan Teway and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Sichuan Teway and Anji Foodstuff
Assuming the 90 days trading horizon Sichuan Teway Food is expected to under-perform the Anji Foodstuff. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Teway Food is 1.19 times less risky than Anji Foodstuff. The stock trades about -0.03 of its potential returns per unit of risk. The Anji Foodstuff Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,063 in Anji Foodstuff Co on August 31, 2024 and sell it today you would lose (219.00) from holding Anji Foodstuff Co or give up 20.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Teway Food vs. Anji Foodstuff Co
Performance |
| Timeline |
| Sichuan Teway Food |
| Anji Foodstuff |
Sichuan Teway and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Teway and Anji Foodstuff
The main advantage of trading using opposite Sichuan Teway and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Teway 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.| Sichuan Teway vs. Lutian Machinery Co | Sichuan Teway vs. PetroChina Co Ltd | Sichuan Teway vs. Bank of China | Sichuan Teway vs. Gansu Jiu Steel |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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