Correlation Between Anji Foodstuff and Hangzhou Weiguang
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By analyzing existing cross correlation between Anji Foodstuff Co and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Anji Foodstuff and Hangzhou Weiguang 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 Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Hangzhou Weiguang.
Diversification Opportunities for Anji Foodstuff and Hangzhou Weiguang
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anji and Hangzhou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang 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 Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Hangzhou Weiguang
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to under-perform the Hangzhou Weiguang. In addition to that, Anji Foodstuff is 1.22 times more volatile than Hangzhou Weiguang Electronic. It trades about -0.03 of its total potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.07 per unit of volatility. If you would invest 2,435 in Hangzhou Weiguang Electronic on October 22, 2024 and sell it today you would earn a total of 71.00 from holding Hangzhou Weiguang Electronic or generate 2.92% 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. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Anji Foodstuff |
| Hangzhou Weiguang |
Anji Foodstuff and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Hangzhou Weiguang
The main advantage of trading using opposite Anji Foodstuff and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Hangzhou Weiguang 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 Hangzhou Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| Anji Foodstuff vs. Hubei Yingtong Telecommunication | Anji Foodstuff vs. Eastern Communications Co | Anji Foodstuff vs. Tinavi Medical Technologies | Anji Foodstuff vs. Chison Medical Technologies |
| Hangzhou Weiguang vs. HeNan Splendor Science | Hangzhou Weiguang vs. Tongding Interconnection Information | Hangzhou Weiguang vs. Nanjing Canatal Data | Hangzhou Weiguang vs. Unisplendour Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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