Correlation Between Anji Foodstuff and Muyuan Foodstuff
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By analyzing existing cross correlation between Anji Foodstuff Co and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Anji Foodstuff and Muyuan Foodstuff 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 Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Muyuan Foodstuff.
Diversification Opportunities for Anji Foodstuff and Muyuan Foodstuff
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anji and Muyuan is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff 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 Muyuan Foodstuff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muyuan Foodstuff has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Muyuan Foodstuff
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to under-perform the Muyuan Foodstuff. In addition to that, Anji Foodstuff is 3.49 times more volatile than Muyuan Foodstuff Co. It trades about -0.36 of its total potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about -0.41 per unit of volatility. If you would invest 3,948 in Muyuan Foodstuff Co on October 14, 2024 and sell it today you would lose (328.00) from holding Muyuan Foodstuff Co or give up 8.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Anji Foodstuff |
| Muyuan Foodstuff |
Anji Foodstuff and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Muyuan Foodstuff
The main advantage of trading using opposite Anji Foodstuff and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Muyuan Foodstuff 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 Muyuan Foodstuff will offset losses from the drop in Muyuan Foodstuff's long position.| Anji Foodstuff vs. Central Plains Environment | Anji Foodstuff vs. Beijing Shunxin Agriculture | Anji Foodstuff vs. Qingdao Foods Co | Anji Foodstuff vs. Guangdong Wens Foodstuff |
| Muyuan Foodstuff vs. Guangdong Wens Foodstuff | Muyuan Foodstuff vs. Miracll Chemicals Co | Muyuan Foodstuff vs. HaiXin Foods Co | Muyuan Foodstuff vs. Gan Yuan Foods |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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