Correlation Between Anji Foodstuff and Anhui Tongguan
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By analyzing existing cross correlation between Anji Foodstuff Co and Anhui Tongguan Copper, you can compare the effects of market volatilities on Anji Foodstuff and Anhui Tongguan 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 Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Anhui Tongguan.
Diversification Opportunities for Anji Foodstuff and Anhui Tongguan
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anji and Anhui is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper 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 Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Anhui Tongguan
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 0.6 times more return on investment than Anhui Tongguan. However, Anji Foodstuff Co is 1.66 times less risky than Anhui Tongguan. It trades about 0.2 of its potential returns per unit of risk. Anhui Tongguan Copper is currently generating about 0.1 per unit of risk. If you would invest 760.00 in Anji Foodstuff Co on November 5, 2024 and sell it today you would earn a total of 48.00 from holding Anji Foodstuff Co or generate 6.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Anhui Tongguan Copper
Performance |
| Timeline |
| Anji Foodstuff |
| Anhui Tongguan Copper |
Anji Foodstuff and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Anhui Tongguan
The main advantage of trading using opposite Anji Foodstuff and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Anhui Tongguan 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 Anhui Tongguan will offset losses from the drop in Anhui Tongguan's long position.| Anji Foodstuff vs. Jinzai Food Group | Anji Foodstuff vs. Eastroc Beverage Group | Anji Foodstuff vs. Anhui Jianghuai Automobile | Anji Foodstuff vs. Beijing Bewinner Communications |
| Anhui Tongguan vs. Allmed Medical Products | Anhui Tongguan vs. Kontour Medical Technology | Anhui Tongguan vs. Ningbo Tip Rubber | Anhui Tongguan vs. CareRay Digital Medical |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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