Correlation Between Anji Foodstuff and Kuangda Technology
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By analyzing existing cross correlation between Anji Foodstuff Co and Kuangda Technology Group, you can compare the effects of market volatilities on Anji Foodstuff and Kuangda Technology 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 Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Kuangda Technology.
Diversification Opportunities for Anji Foodstuff and Kuangda Technology
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anji and Kuangda is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology 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 Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Kuangda Technology go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Kuangda Technology
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to under-perform the Kuangda Technology. In addition to that, Anji Foodstuff is 1.12 times more volatile than Kuangda Technology Group. It trades about -0.02 of its total potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.01 per unit of volatility. If you would invest 480.00 in Kuangda Technology Group on October 16, 2024 and sell it today you would lose (4.00) from holding Kuangda Technology Group or give up 0.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Kuangda Technology Group
Performance |
| Timeline |
| Anji Foodstuff |
| Kuangda Technology |
Anji Foodstuff and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Kuangda Technology
The main advantage of trading using opposite Anji Foodstuff and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Kuangda Technology 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 Kuangda Technology will offset losses from the drop in Kuangda Technology'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 |
| Kuangda Technology vs. Vanfund Urban Investment | Kuangda Technology vs. Great Sun Foods Co | Kuangda Technology vs. Metro Investment Development | Kuangda Technology vs. Anji Foodstuff 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 CEOs Directory module to screen CEOs from public companies around the world.
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