Correlation Between Anji Foodstuff and V V
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By analyzing existing cross correlation between Anji Foodstuff Co and V V Food, you can compare the effects of market volatilities on Anji Foodstuff and V V 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 V V. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and V V.
Diversification Opportunities for Anji Foodstuff and V V
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anji and 600300 is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and V V Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V V Food 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 V V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V V Food has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and V V go up and down completely randomly.
Pair Corralation between Anji Foodstuff and V V
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to under-perform the V V. In addition to that, Anji Foodstuff is 1.04 times more volatile than V V Food. It trades about -0.05 of its total potential returns per unit of risk. V V Food is currently generating about -0.02 per unit of volatility. If you would invest 293.00 in V V Food on August 27, 2024 and sell it today you would lose (3.00) from holding V V Food or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. V V Food
Performance |
| Timeline |
| Anji Foodstuff |
| V V Food |
Anji Foodstuff and V V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and V V
The main advantage of trading using opposite Anji Foodstuff and V V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, V V 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 V V will offset losses from the drop in V V'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 |
| V V vs. China Petroleum Chemical | V V vs. PetroChina Co Ltd | V V vs. China State Construction | V V vs. China Railway Group |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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