Correlation Between Anji Foodstuff and CIMC Vehicles
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By analyzing existing cross correlation between Anji Foodstuff Co and CIMC Vehicles Co, you can compare the effects of market volatilities on Anji Foodstuff and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and CIMC Vehicles.
Diversification Opportunities for Anji Foodstuff and CIMC Vehicles
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anji and CIMC is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Anji Foodstuff and CIMC Vehicles
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 1.1 times more return on investment than CIMC Vehicles. However, Anji Foodstuff is 1.1 times more volatile than CIMC Vehicles Co. It trades about 0.2 of its potential returns per unit of risk. CIMC Vehicles Co is currently generating about -0.01 per unit of risk. If you would invest 769.00 in Anji Foodstuff Co on August 31, 2024 and sell it today you would earn a total of 75.00 from holding Anji Foodstuff Co or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. CIMC Vehicles Co
Performance |
| Timeline |
| Anji Foodstuff |
| CIMC Vehicles |
Anji Foodstuff and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and CIMC Vehicles
The main advantage of trading using opposite Anji Foodstuff and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' 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 |
| CIMC Vehicles vs. Lander Sports Development | CIMC Vehicles vs. Caihong Display Devices | CIMC Vehicles vs. Everdisplay Optronics Shanghai | CIMC Vehicles vs. Olympic Circuit Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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