Correlation Between Anji Foodstuff and Sunny Loan
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By analyzing existing cross correlation between Anji Foodstuff Co and Sunny Loan Top, you can compare the effects of market volatilities on Anji Foodstuff and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Sunny Loan.
Diversification Opportunities for Anji Foodstuff and Sunny Loan
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anji and Sunny is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Sunny Loan go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Sunny Loan
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 0.71 times more return on investment than Sunny Loan. However, Anji Foodstuff Co is 1.41 times less risky than Sunny Loan. It trades about 0.23 of its potential returns per unit of risk. Sunny Loan Top is currently generating about -0.11 per unit of risk. If you would invest 780.00 in Anji Foodstuff Co on September 1, 2024 and sell it today you would earn a total of 88.00 from holding Anji Foodstuff Co or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Sunny Loan Top
Performance |
| Timeline |
| Anji Foodstuff |
| Sunny Loan Top |
Anji Foodstuff and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Sunny Loan
The main advantage of trading using opposite Anji Foodstuff and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Anji Foodstuff vs. Sunwave Communications Co | Anji Foodstuff vs. Shuhua Sports Co | Anji Foodstuff vs. CICT Mobile Communication | Anji Foodstuff vs. Shenzhen Kexin Communication |
| Sunny Loan vs. Elite Color Environmental | Sunny Loan vs. Shenzhen MYS Environmental | Sunny Loan vs. Chengtun Mining Group | Sunny Loan vs. Ye Chiu Metal |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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