Correlation Between Anji Foodstuff and Gem Year
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By analyzing existing cross correlation between Anji Foodstuff Co and Gem Year Industrial Co, you can compare the effects of market volatilities on Anji Foodstuff and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Gem Year.
Diversification Opportunities for Anji Foodstuff and Gem Year
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anji and Gem is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Gem Year go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Gem Year
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to under-perform the Gem Year. In addition to that, Anji Foodstuff is 1.99 times more volatile than Gem Year Industrial Co. It trades about -0.2 of its total potential returns per unit of risk. Gem Year Industrial Co is currently generating about -0.25 per unit of volatility. If you would invest 487.00 in Gem Year Industrial Co on October 11, 2024 and sell it today you would lose (60.00) from holding Gem Year Industrial Co or give up 12.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Gem Year Industrial Co
Performance |
| Timeline |
| Anji Foodstuff |
| Gem Year Industrial |
Anji Foodstuff and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Gem Year
The main advantage of trading using opposite Anji Foodstuff and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Anji Foodstuff vs. Vats Liquor Chain | Anji Foodstuff vs. Jiugui Liquor Co | Anji Foodstuff vs. Guocheng Mining Co | Anji Foodstuff vs. JCHX Mining Management |
| Gem Year vs. Fujian Anjoy Foods | Gem Year vs. Guilin Seamild Foods | Gem Year vs. Shanghai Ziyan Foods | Gem Year vs. Anji Foodstuff 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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