Correlation Between Anji Foodstuff and Anhui Deli
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By analyzing existing cross correlation between Anji Foodstuff Co and Anhui Deli Household, you can compare the effects of market volatilities on Anji Foodstuff and Anhui Deli 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 Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Anhui Deli.
Diversification Opportunities for Anji Foodstuff and Anhui Deli
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anji and Anhui is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Anhui Deli Household in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Deli Household 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 Anhui Deli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Deli Household has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Anhui Deli go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Anhui Deli
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to under-perform the Anhui Deli. But the stock apears to be less risky and, when comparing its historical volatility, Anji Foodstuff Co is 2.08 times less risky than Anhui Deli. The stock trades about -0.04 of its potential returns per unit of risk. The Anhui Deli Household is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 423.00 in Anhui Deli Household on October 30, 2024 and sell it today you would lose (15.00) from holding Anhui Deli Household or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Anhui Deli Household
Performance |
| Timeline |
| Anji Foodstuff |
| Anhui Deli Household |
Anji Foodstuff and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Anhui Deli
The main advantage of trading using opposite Anji Foodstuff and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Anhui Deli 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 Anhui Deli will offset losses from the drop in Anhui Deli's long position.| Anji Foodstuff vs. Ziel Home Furnishing | Anji Foodstuff vs. China Asset Management | Anji Foodstuff vs. Shenzhen Topway Video | Anji Foodstuff vs. Mengtian Home Group |
| Anhui Deli vs. Queclink Wireless Solutions | Anhui Deli vs. Beingmate Baby Child | Anhui Deli vs. BizConf Telecom Co | Anhui Deli vs. Wintao Communications 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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