Correlation Between Anji Foodstuff and Chengdu B

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Anji Foodstuff and Chengdu B at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Anji Foodstuff and Chengdu B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anji Foodstuff Co and Chengdu B ray Media, you can compare the effects of market volatilities on Anji Foodstuff and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Chengdu B.

Diversification Opportunities for Anji Foodstuff and Chengdu B

AnjiChengduDiversified AwayAnjiChengduDiversified Away100%
0.67
  Correlation Coefficient

Poor diversification

The 3 months correlation between Anji and Chengdu is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Chengdu B go up and down completely randomly.

Pair Corralation between Anji Foodstuff and Chengdu B

Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 0.9 times more return on investment than Chengdu B. However, Anji Foodstuff Co is 1.12 times less risky than Chengdu B. It trades about 0.0 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about 0.0 per unit of risk. If you would invest  993.00  in Anji Foodstuff Co on October 29, 2024 and sell it today you would lose (185.00) from holding Anji Foodstuff Co or give up 18.63% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Anji Foodstuff Co  vs.  Chengdu B ray Media

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 0102030405060
JavaScript chart by amCharts 3.21.15603696 600880
       Timeline  
Anji Foodstuff 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Anji Foodstuff Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Anji Foodstuff may actually be approaching a critical reversion point that can send shares even higher in February 2025.
JavaScript chart by amCharts 3.21.15DecJanJan7.588.599.51010.511
Chengdu B ray 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Chengdu B ray Media are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Chengdu B is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanJan4.555.566.57

Anji Foodstuff and Chengdu B Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.78-8.07-5.37-2.660.04632.735.518.2911.07 0.0200.0250.0300.035
JavaScript chart by amCharts 3.21.15603696 600880
       Returns  

Pair Trading with Anji Foodstuff and Chengdu B

The main advantage of trading using opposite Anji Foodstuff and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B's long position.
The idea behind Anji Foodstuff Co and Chengdu B ray Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

Other Complementary Tools

Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk