Correlation Between Anji Foodstuff and Beijing Sanyuan
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By analyzing existing cross correlation between Anji Foodstuff Co and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Anji Foodstuff and Beijing Sanyuan 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 Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Beijing Sanyuan.
Diversification Opportunities for Anji Foodstuff and Beijing Sanyuan
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anji and Beijing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods 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 Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Beijing Sanyuan
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 1.6 times more return on investment than Beijing Sanyuan. However, Anji Foodstuff is 1.6 times more volatile than Beijing Sanyuan Foods. It trades about 0.01 of its potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about -0.02 per unit of risk. If you would invest 921.00 in Anji Foodstuff Co on December 4, 2024 and sell it today you would lose (45.00) from holding Anji Foodstuff Co or give up 4.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Anji Foodstuff |
| Beijing Sanyuan Foods |
Anji Foodstuff and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Beijing Sanyuan
The main advantage of trading using opposite Anji Foodstuff and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Beijing Sanyuan 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 Beijing Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Anji Foodstuff vs. China Asset Management | Anji Foodstuff vs. Postal Savings Bank | Anji Foodstuff vs. Zhejiang Construction Investment | Anji Foodstuff vs. Harvest Fund Management |
| Beijing Sanyuan vs. Mingchen Health Co | Beijing Sanyuan vs. Hangzhou Minsheng Healthcare | Beijing Sanyuan vs. Healthcare Co | Beijing Sanyuan vs. Heren Health Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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