Correlation Between Anji Foodstuff and Jilin Chemical
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By analyzing existing cross correlation between Anji Foodstuff Co and Jilin Chemical Fibre, you can compare the effects of market volatilities on Anji Foodstuff and Jilin Chemical 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 Jilin Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Jilin Chemical.
Diversification Opportunities for Anji Foodstuff and Jilin Chemical
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anji and Jilin is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Jilin Chemical Fibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Chemical Fibre 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 Jilin Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Chemical Fibre has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Jilin Chemical go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Jilin Chemical
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to under-perform the Jilin Chemical. In addition to that, Anji Foodstuff is 1.58 times more volatile than Jilin Chemical Fibre. It trades about -0.25 of its total potential returns per unit of risk. Jilin Chemical Fibre is currently generating about -0.37 per unit of volatility. If you would invest 419.00 in Jilin Chemical Fibre on October 17, 2024 and sell it today you would lose (75.00) from holding Jilin Chemical Fibre or give up 17.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Jilin Chemical Fibre
Performance |
| Timeline |
| Anji Foodstuff |
| Jilin Chemical Fibre |
Anji Foodstuff and Jilin Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Jilin Chemical
The main advantage of trading using opposite Anji Foodstuff and Jilin Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Jilin Chemical 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 Jilin Chemical will offset losses from the drop in Jilin Chemical's long position.| Anji Foodstuff vs. Cultural Investment Holdings | Anji Foodstuff vs. Shenyang Huitian Thermal | Anji Foodstuff vs. Anhui Tongguan Copper | Anji Foodstuff vs. Western Metal Materials |
| Jilin Chemical vs. Qingdao Foods Co | Jilin Chemical vs. Anji Foodstuff Co | Jilin Chemical vs. Quectel Wireless Solutions | Jilin Chemical vs. Muyuan 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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