Correlation Between Anji Foodstuff and Shanghai Material
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By analyzing existing cross correlation between Anji Foodstuff Co and Shanghai Material Trading, you can compare the effects of market volatilities on Anji Foodstuff and Shanghai Material 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 Shanghai Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Shanghai Material.
Diversification Opportunities for Anji Foodstuff and Shanghai Material
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anji and Shanghai is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Shanghai Material Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Material Trading 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 Shanghai Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Material Trading has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Shanghai Material go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Shanghai Material
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 1.39 times more return on investment than Shanghai Material. However, Anji Foodstuff is 1.39 times more volatile than Shanghai Material Trading. It trades about -0.04 of its potential returns per unit of risk. Shanghai Material Trading is currently generating about -0.23 per unit of risk. If you would invest 830.00 in Anji Foodstuff Co on October 30, 2024 and sell it today you would lose (22.00) from holding Anji Foodstuff Co or give up 2.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Shanghai Material Trading
Performance |
| Timeline |
| Anji Foodstuff |
| Shanghai Material Trading |
Anji Foodstuff and Shanghai Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Shanghai Material
The main advantage of trading using opposite Anji Foodstuff and Shanghai Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Shanghai Material 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 Shanghai Material will offset losses from the drop in Shanghai Material's long position.| Anji Foodstuff vs. Ziel Home Furnishing | Anji Foodstuff vs. China Asset Management | Anji Foodstuff vs. Shenzhen Topway Video | Anji Foodstuff vs. Mengtian Home Group |
| Shanghai Material vs. Jinling Hotel Corp | Shanghai Material vs. Ningxia Younglight Chemicals | Shanghai Material vs. Shandong Polymer Biochemicals | Shanghai Material vs. Guocheng Mining 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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