Correlation Between Anji Foodstuff and Tengda Construction
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By analyzing existing cross correlation between Anji Foodstuff Co and Tengda Construction Group, you can compare the effects of market volatilities on Anji Foodstuff and Tengda Construction 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 Tengda Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Tengda Construction.
Diversification Opportunities for Anji Foodstuff and Tengda Construction
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anji and Tengda is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Tengda Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tengda Construction 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 Tengda Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tengda Construction has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Tengda Construction go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Tengda Construction
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 1.51 times more return on investment than Tengda Construction. However, Anji Foodstuff is 1.51 times more volatile than Tengda Construction Group. It trades about 0.0 of its potential returns per unit of risk. Tengda Construction Group is currently generating about 0.0 per unit of risk. If you would invest 1,042 in Anji Foodstuff Co on September 4, 2024 and sell it today you would lose (165.00) from holding Anji Foodstuff Co or give up 15.83% 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. Tengda Construction Group
Performance |
| Timeline |
| Anji Foodstuff |
| Tengda Construction |
Anji Foodstuff and Tengda Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Tengda Construction
The main advantage of trading using opposite Anji Foodstuff and Tengda Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Tengda Construction 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 Tengda Construction will offset losses from the drop in Tengda Construction's long position.| Anji Foodstuff vs. Sunwave Communications Co | Anji Foodstuff vs. Wuhan Yangtze Communication | Anji Foodstuff vs. Jiangxi Hengda Hi Tech | Anji Foodstuff vs. Shenzhen Zhongzhuang Construction |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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