Correlation Between Juewei Food and Anji Foodstuff
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By analyzing existing cross correlation between Juewei Food Co and Anji Foodstuff Co, you can compare the effects of market volatilities on Juewei Food 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 Juewei Food with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and Anji Foodstuff.
Diversification Opportunities for Juewei Food and Anji Foodstuff
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juewei and Anji is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food 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 Juewei Food 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 Juewei Food 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 Juewei Food i.e., Juewei Food and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Juewei Food and Anji Foodstuff
Assuming the 90 days trading horizon Juewei Food Co is expected to under-perform the Anji Foodstuff. In addition to that, Juewei Food is 1.01 times more volatile than Anji Foodstuff Co. It trades about -0.09 of its total potential returns per unit of risk. Anji Foodstuff Co is currently generating about -0.01 per unit of volatility. If you would invest 989.00 in Anji Foodstuff Co on October 16, 2024 and sell it today you would lose (219.00) from holding Anji Foodstuff Co or give up 22.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juewei Food Co vs. Anji Foodstuff Co
Performance |
| Timeline |
| Juewei Food |
| Anji Foodstuff |
Juewei Food and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juewei Food and Anji Foodstuff
The main advantage of trading using opposite Juewei Food and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food 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.| Juewei Food vs. Jinhui Liquor Co | Juewei Food vs. Guangzhou KDT Machinery | Juewei Food vs. Shantui Construction Machinery | Juewei Food vs. Shenzhen Zhongzhuang Construction |
| Anji Foodstuff vs. Cultural Investment Holdings | Anji Foodstuff vs. Vanfund Urban Investment | Anji Foodstuff vs. Luyin Investment Group | Anji Foodstuff vs. Henan Shuanghui Investment |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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