Correlation Between Anji Foodstuff and Xinxiang Chemical
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By analyzing existing cross correlation between Anji Foodstuff Co and Xinxiang Chemical Fiber, you can compare the effects of market volatilities on Anji Foodstuff and Xinxiang 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 Xinxiang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Xinxiang Chemical.
Diversification Opportunities for Anji Foodstuff and Xinxiang Chemical
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anji and Xinxiang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Xinxiang Chemical Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinxiang Chemical Fiber 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 Xinxiang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinxiang Chemical Fiber has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Xinxiang Chemical go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Xinxiang Chemical
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 0.82 times more return on investment than Xinxiang Chemical. However, Anji Foodstuff Co is 1.22 times less risky than Xinxiang Chemical. It trades about 0.28 of its potential returns per unit of risk. Xinxiang Chemical Fiber is currently generating about 0.19 per unit of risk. If you would invest 796.00 in Anji Foodstuff Co on September 15, 2024 and sell it today you would earn a total of 213.00 from holding Anji Foodstuff Co or generate 26.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Xinxiang Chemical Fiber
Performance |
| Timeline |
| Anji Foodstuff |
| Xinxiang Chemical Fiber |
Anji Foodstuff and Xinxiang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Xinxiang Chemical
The main advantage of trading using opposite Anji Foodstuff and Xinxiang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Xinxiang 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 Xinxiang Chemical will offset losses from the drop in Xinxiang Chemical's long position.| Anji Foodstuff vs. Nanjing Putian Telecommunications | Anji Foodstuff vs. Tianjin Realty Development | Anji Foodstuff vs. Kangyue Technology Co | Anji Foodstuff vs. Shenzhen Hifuture Electric |
| Xinxiang Chemical vs. Zijin Mining Group | Xinxiang Chemical vs. Wanhua Chemical Group | Xinxiang Chemical vs. Baoshan Iron Steel | Xinxiang Chemical vs. Shandong Gold Mining |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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