Correlation Between Anji Foodstuff and CSPC Innovation
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By analyzing existing cross correlation between Anji Foodstuff Co and CSPC Innovation Pharmaceutical, you can compare the effects of market volatilities on Anji Foodstuff and CSPC Innovation 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 CSPC Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and CSPC Innovation.
Diversification Opportunities for Anji Foodstuff and CSPC Innovation
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anji and CSPC is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and CSPC Innovation Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSPC Innovation Phar 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 CSPC Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSPC Innovation Phar has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and CSPC Innovation go up and down completely randomly.
Pair Corralation between Anji Foodstuff and CSPC Innovation
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to under-perform the CSPC Innovation. But the stock apears to be less risky and, when comparing its historical volatility, Anji Foodstuff Co is 1.33 times less risky than CSPC Innovation. The stock trades about -0.08 of its potential returns per unit of risk. The CSPC Innovation Pharmaceutical is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,545 in CSPC Innovation Pharmaceutical on November 3, 2024 and sell it today you would earn a total of 317.00 from holding CSPC Innovation Pharmaceutical or generate 12.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. CSPC Innovation Pharmaceutical
Performance |
| Timeline |
| Anji Foodstuff |
| CSPC Innovation Phar |
Anji Foodstuff and CSPC Innovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and CSPC Innovation
The main advantage of trading using opposite Anji Foodstuff and CSPC Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, CSPC Innovation 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 CSPC Innovation will offset losses from the drop in CSPC Innovation's long position.| Anji Foodstuff vs. Anhui Huaheng Biotechnology | Anji Foodstuff vs. Double Medical Technology | Anji Foodstuff vs. Shanghai Rightongene Biotechnology | Anji Foodstuff vs. Zhonghong Pulin Medical |
| CSPC Innovation vs. China Longyuan Power | CSPC Innovation vs. PetroChina Co Ltd | CSPC Innovation vs. Guangxi Guiguan Electric | CSPC Innovation vs. Yantai North Andre |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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