Correlation Between Anji Foodstuff and Nanhua Bio
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By analyzing existing cross correlation between Anji Foodstuff Co and Nanhua Bio Medicine, you can compare the effects of market volatilities on Anji Foodstuff and Nanhua Bio 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 Nanhua Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Nanhua Bio.
Diversification Opportunities for Anji Foodstuff and Nanhua Bio
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anji and Nanhua is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Nanhua Bio Medicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanhua Bio Medicine 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 Nanhua Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanhua Bio Medicine has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Nanhua Bio go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Nanhua Bio
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 1.22 times more return on investment than Nanhua Bio. However, Anji Foodstuff is 1.22 times more volatile than Nanhua Bio Medicine. It trades about 0.2 of its potential returns per unit of risk. Nanhua Bio Medicine is currently generating about 0.22 per unit of risk. If you would invest 807.00 in Anji Foodstuff Co on December 4, 2024 and sell it today you would earn a total of 69.00 from holding Anji Foodstuff Co or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Nanhua Bio Medicine
Performance |
| Timeline |
| Anji Foodstuff |
| Nanhua Bio Medicine |
Anji Foodstuff and Nanhua Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Nanhua Bio
The main advantage of trading using opposite Anji Foodstuff and Nanhua Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Nanhua Bio 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 Nanhua Bio will offset losses from the drop in Nanhua Bio's long position.| Anji Foodstuff vs. China Asset Management | Anji Foodstuff vs. Postal Savings Bank | Anji Foodstuff vs. Zhejiang Construction Investment | Anji Foodstuff vs. Harvest Fund Management |
| Nanhua Bio vs. Guangzhou Automobile Group | Nanhua Bio vs. China Eastern Airlines | Nanhua Bio vs. Ningbo Fangzheng Automobile | Nanhua Bio vs. Beijing Sanyuan Foods |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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