Correlation Between Anji Foodstuff and Shenzhen Clou
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By analyzing existing cross correlation between Anji Foodstuff Co and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Anji Foodstuff and Shenzhen Clou 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 Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Shenzhen Clou.
Diversification Opportunities for Anji Foodstuff and Shenzhen Clou
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anji and Shenzhen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics 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 Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Shenzhen Clou
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to under-perform the Shenzhen Clou. But the stock apears to be less risky and, when comparing its historical volatility, Anji Foodstuff Co is 1.08 times less risky than Shenzhen Clou. The stock trades about -0.37 of its potential returns per unit of risk. The Shenzhen Clou Electronics is currently generating about -0.3 of returns per unit of risk over similar time horizon. If you would invest 514.00 in Shenzhen Clou Electronics on October 15, 2024 and sell it today you would lose (112.00) from holding Shenzhen Clou Electronics or give up 21.79% 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. Shenzhen Clou Electronics
Performance |
| Timeline |
| Anji Foodstuff |
| Shenzhen Clou Electronics |
Anji Foodstuff and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Shenzhen Clou
The main advantage of trading using opposite Anji Foodstuff and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Shenzhen Clou 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 Shenzhen Clou will offset losses from the drop in Shenzhen Clou's long position.| Anji Foodstuff vs. Cultural Investment Holdings | Anji Foodstuff vs. Vanfund Urban Investment | Anji Foodstuff vs. Luyin Investment Group | Anji Foodstuff vs. Henan Shuanghui Investment |
| Shenzhen Clou vs. Jinxiandai Information Industry | Shenzhen Clou vs. Hangzhou Gisway Information | Shenzhen Clou vs. Longmaster Information Tech | Shenzhen Clou vs. Sinomach Automobile 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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