Correlation Between Anji Foodstuff and Sichuan Yahua
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By analyzing existing cross correlation between Anji Foodstuff Co and Sichuan Yahua Industrial, you can compare the effects of market volatilities on Anji Foodstuff and Sichuan Yahua 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 Sichuan Yahua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Sichuan Yahua.
Diversification Opportunities for Anji Foodstuff and Sichuan Yahua
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anji and Sichuan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Sichuan Yahua Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Yahua Industrial 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 Sichuan Yahua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Yahua Industrial has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Sichuan Yahua go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Sichuan Yahua
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to under-perform the Sichuan Yahua. In addition to that, Anji Foodstuff is 1.18 times more volatile than Sichuan Yahua Industrial. It trades about -0.01 of its total potential returns per unit of risk. Sichuan Yahua Industrial is currently generating about 0.1 per unit of volatility. If you would invest 1,133 in Sichuan Yahua Industrial on November 7, 2024 and sell it today you would earn a total of 183.00 from holding Sichuan Yahua Industrial or generate 16.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Sichuan Yahua Industrial
Performance |
| Timeline |
| Anji Foodstuff |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sichuan Yahua Industrial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Anji Foodstuff and Sichuan Yahua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Sichuan Yahua
The main advantage of trading using opposite Anji Foodstuff and Sichuan Yahua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Sichuan Yahua 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 Sichuan Yahua will offset losses from the drop in Sichuan Yahua's long position.The idea behind Anji Foodstuff Co and Sichuan Yahua Industrial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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