Correlation Between Anji Foodstuff and Ningbo Fangzheng
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By analyzing existing cross correlation between Anji Foodstuff Co and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Anji Foodstuff and Ningbo Fangzheng 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 Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Ningbo Fangzheng.
Diversification Opportunities for Anji Foodstuff and Ningbo Fangzheng
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anji and Ningbo is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Ningbo Fangzheng Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fangzheng Aut 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 Ningbo Fangzheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fangzheng Aut has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Ningbo Fangzheng
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 1.08 times more return on investment than Ningbo Fangzheng. However, Anji Foodstuff is 1.08 times more volatile than Ningbo Fangzheng Automobile. It trades about 0.28 of its potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about 0.13 per unit of risk. If you would invest 821.00 in Anji Foodstuff Co on September 12, 2024 and sell it today you would earn a total of 166.00 from holding Anji Foodstuff Co or generate 20.22% 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. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| Anji Foodstuff |
| Ningbo Fangzheng Aut |
Anji Foodstuff and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Ningbo Fangzheng
The main advantage of trading using opposite Anji Foodstuff and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Ningbo Fangzheng 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 Ningbo Fangzheng will offset losses from the drop in Ningbo Fangzheng's long position.| Anji Foodstuff vs. China Petroleum Chemical | Anji Foodstuff vs. PetroChina Co Ltd | Anji Foodstuff vs. China State Construction | Anji Foodstuff vs. China Railway Group |
| Ningbo Fangzheng vs. Lutian Machinery Co | Ningbo Fangzheng vs. PetroChina Co Ltd | Ningbo Fangzheng vs. Bank of China | Ningbo Fangzheng 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 Stocks Directory module to find actively traded stocks across global markets.
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