Correlation Between Anji Foodstuff and Jiajia Food
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By analyzing existing cross correlation between Anji Foodstuff Co and Jiajia Food Group, you can compare the effects of market volatilities on Anji Foodstuff and Jiajia Food 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 Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Jiajia Food.
Diversification Opportunities for Anji Foodstuff and Jiajia Food
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anji and Jiajia is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Jiajia Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiajia Food Group 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 Jiajia Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiajia Food Group has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Jiajia Food go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Jiajia Food
Assuming the 90 days trading horizon Anji Foodstuff is expected to generate 3.01 times less return on investment than Jiajia Food. But when comparing it to its historical volatility, Anji Foodstuff Co is 2.03 times less risky than Jiajia Food. It trades about 0.2 of its potential returns per unit of risk. Jiajia Food Group is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 337.00 in Jiajia Food Group on August 31, 2024 and sell it today you would earn a total of 106.00 from holding Jiajia Food Group or generate 31.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Jiajia Food Group
Performance |
| Timeline |
| Anji Foodstuff |
| Jiajia Food Group |
Anji Foodstuff and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Jiajia Food
The main advantage of trading using opposite Anji Foodstuff and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Jiajia Food 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 Jiajia Food will offset losses from the drop in Jiajia Food's long position.| Anji Foodstuff vs. Lutian Machinery Co | Anji Foodstuff vs. PetroChina Co Ltd | Anji Foodstuff vs. Bank of China | Anji Foodstuff vs. Gansu Jiu Steel |
| Jiajia Food vs. Lutian Machinery Co | Jiajia Food vs. PetroChina Co Ltd | Jiajia Food vs. Bank of China | Jiajia Food vs. Gansu Jiu Steel |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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