Correlation Between Anji Foodstuff and Shandong Mining
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By analyzing existing cross correlation between Anji Foodstuff Co and Shandong Mining Machinery, you can compare the effects of market volatilities on Anji Foodstuff and Shandong Mining 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 Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Shandong Mining.
Diversification Opportunities for Anji Foodstuff and Shandong Mining
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anji and Shandong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Shandong Mining Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Mining Machinery 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 Shandong Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Mining Machinery has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Shandong Mining go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Shandong Mining
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to under-perform the Shandong Mining. But the stock apears to be less risky and, when comparing its historical volatility, Anji Foodstuff Co is 1.04 times less risky than Shandong Mining. The stock trades about 0.0 of its potential returns per unit of risk. The Shandong Mining Machinery is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 230.00 in Shandong Mining Machinery on September 4, 2024 and sell it today you would earn a total of 166.00 from holding Shandong Mining Machinery or generate 72.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Shandong Mining Machinery
Performance |
| Timeline |
| Anji Foodstuff |
| Shandong Mining Machinery |
Anji Foodstuff and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Shandong Mining
The main advantage of trading using opposite Anji Foodstuff and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Shandong Mining 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 Shandong Mining will offset losses from the drop in Shandong Mining's long position.| Anji Foodstuff vs. Sunwave Communications Co | Anji Foodstuff vs. Wuhan Yangtze Communication | Anji Foodstuff vs. Jiangxi Hengda Hi Tech | Anji Foodstuff vs. Shenzhen Zhongzhuang Construction |
| Shandong Mining vs. Xinjiang Communications Construction | Shandong Mining vs. Nanjing Putian Telecommunications | Shandong Mining vs. Jonjee Hi tech Industrial | Shandong Mining vs. Zoje Resources 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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