Correlation Between Anji Foodstuff and Wintao Communications
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By analyzing existing cross correlation between Anji Foodstuff Co and Wintao Communications Co, you can compare the effects of market volatilities on Anji Foodstuff and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Wintao Communications.
Diversification Opportunities for Anji Foodstuff and Wintao Communications
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anji and Wintao is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Wintao Communications go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Wintao Communications
Assuming the 90 days trading horizon Anji Foodstuff is expected to generate 1.5 times less return on investment than Wintao Communications. But when comparing it to its historical volatility, Anji Foodstuff Co is 1.4 times less risky than Wintao Communications. It trades about 0.2 of its potential returns per unit of risk. Wintao Communications Co is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,003 in Wintao Communications Co on November 6, 2024 and sell it today you would earn a total of 190.00 from holding Wintao Communications Co or generate 9.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Wintao Communications Co
Performance |
| Timeline |
| Anji Foodstuff |
| Wintao Communications |
Anji Foodstuff and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Wintao Communications
The main advantage of trading using opposite Anji Foodstuff and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Anji Foodstuff vs. Tonghua Grape Wine | Anji Foodstuff vs. Youyou Foods Co | Anji Foodstuff vs. Xiangpiaopiao Food Co | Anji Foodstuff vs. Anhui Gujing Distillery |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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