Correlation Between Anji Foodstuff and China Vanke
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By analyzing existing cross correlation between Anji Foodstuff Co and China Vanke Co, you can compare the effects of market volatilities on Anji Foodstuff and China Vanke 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 Anji Foodstuff with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and China Vanke.
Diversification Opportunities for Anji Foodstuff and China Vanke
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anji and China is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and Anji Foodstuff 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 Anji Foodstuff Co are associated (or correlated) with China Vanke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Vanke has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and China Vanke go up and down completely randomly.
Pair Corralation between Anji Foodstuff and China Vanke
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 1.11 times more return on investment than China Vanke. However, Anji Foodstuff is 1.11 times more volatile than China Vanke Co. It trades about 0.0 of its potential returns per unit of risk. China Vanke Co is currently generating about -0.05 per unit of risk. If you would invest 1,042 in Anji Foodstuff Co on September 4, 2024 and sell it today you would lose (172.00) from holding Anji Foodstuff Co or give up 16.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. China Vanke Co
Performance |
| Timeline |
| Anji Foodstuff |
| China Vanke |
Anji Foodstuff and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and China Vanke
The main advantage of trading using opposite Anji Foodstuff and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, China Vanke 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 China Vanke will offset losses from the drop in China Vanke's long position.| 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 |
| China Vanke vs. Jiajia Food Group | China Vanke vs. Ligao Foods CoLtd | China Vanke vs. Qijing Machinery | China Vanke vs. Anji Foodstuff Co |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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