Correlation Between Anji Foodstuff and Ningbo Ligong
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By analyzing existing cross correlation between Anji Foodstuff Co and Ningbo Ligong Online, you can compare the effects of market volatilities on Anji Foodstuff and Ningbo Ligong 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 Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Ningbo Ligong.
Diversification Opportunities for Anji Foodstuff and Ningbo Ligong
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anji and Ningbo is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online 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 Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Ningbo Ligong
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 1.26 times more return on investment than Ningbo Ligong. However, Anji Foodstuff is 1.26 times more volatile than Ningbo Ligong Online. It trades about 0.06 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.15 per unit of risk. If you would invest 788.00 in Anji Foodstuff Co on August 28, 2024 and sell it today you would earn a total of 19.00 from holding Anji Foodstuff Co or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Ningbo Ligong Online
Performance |
| Timeline |
| Anji Foodstuff |
| Ningbo Ligong Online |
Anji Foodstuff and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Ningbo Ligong
The main advantage of trading using opposite Anji Foodstuff and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong's long position.| Anji Foodstuff vs. China Petroleum Chemical | Anji Foodstuff vs. PetroChina Co Ltd | Anji Foodstuff vs. China State Construction | Anji Foodstuff vs. China Railway Group |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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