Correlation Between Anji Foodstuff and Hua Xia
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By analyzing existing cross correlation between Anji Foodstuff Co and Hua Xia Bank, you can compare the effects of market volatilities on Anji Foodstuff and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Hua Xia.
Diversification Opportunities for Anji Foodstuff and Hua Xia
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anji and Hua is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Hua Xia go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Hua Xia
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to under-perform the Hua Xia. In addition to that, Anji Foodstuff is 1.99 times more volatile than Hua Xia Bank. It trades about -0.01 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about 0.07 per unit of volatility. If you would invest 489.00 in Hua Xia Bank on October 13, 2024 and sell it today you would earn a total of 259.00 from holding Hua Xia Bank or generate 52.97% 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. Hua Xia Bank
Performance |
| Timeline |
| Anji Foodstuff |
| Hua Xia Bank |
Anji Foodstuff and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Hua Xia
The main advantage of trading using opposite Anji Foodstuff and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.| Anji Foodstuff vs. Central Plains Environment | Anji Foodstuff vs. Beijing Shunxin Agriculture | Anji Foodstuff vs. Qingdao Foods Co | Anji Foodstuff vs. Guangdong Wens Foodstuff |
| Hua Xia vs. Ye Chiu Metal | Hua Xia vs. Anji Foodstuff Co | Hua Xia vs. Shantou Wanshun Package | Hua Xia vs. Shandong Hongchuang Aluminum |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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