Correlation Between Anji Foodstuff and Guangxi Guitang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anji Foodstuff Co and Guangxi Guitang Group, you can compare the effects of market volatilities on Anji Foodstuff and Guangxi Guitang 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 Guangxi Guitang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Guangxi Guitang.
Diversification Opportunities for Anji Foodstuff and Guangxi Guitang
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anji and Guangxi is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Guangxi Guitang Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Guitang Group 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 Guangxi Guitang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Guitang Group has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Guangxi Guitang go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Guangxi Guitang
Assuming the 90 days trading horizon Anji Foodstuff is expected to generate 1.31 times less return on investment than Guangxi Guitang. But when comparing it to its historical volatility, Anji Foodstuff Co is 2.25 times less risky than Guangxi Guitang. It trades about 0.44 of its potential returns per unit of risk. Guangxi Guitang Group is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 953.00 in Guangxi Guitang Group on September 14, 2024 and sell it today you would earn a total of 450.00 from holding Guangxi Guitang Group or generate 47.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Guangxi Guitang Group
Performance |
| Timeline |
| Anji Foodstuff |
| Guangxi Guitang Group |
Anji Foodstuff and Guangxi Guitang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Guangxi Guitang
The main advantage of trading using opposite Anji Foodstuff and Guangxi Guitang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Guangxi Guitang 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 Guangxi Guitang will offset losses from the drop in Guangxi Guitang's long position.| Anji Foodstuff vs. Shanghai Rendu Biotechnology | Anji Foodstuff vs. Ningbo MedicalSystem Biotechnology | Anji Foodstuff vs. Eastern Communications Co | Anji Foodstuff vs. TianJin 712 Communication |
| Guangxi Guitang vs. Lander Sports Development | Guangxi Guitang vs. Bomesc Offshore Engineering | Guangxi Guitang vs. China Sports Industry | Guangxi Guitang vs. Haima Automobile Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |