Correlation Between Anji Foodstuff and Heilongjiang Transport
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anji Foodstuff Co and Heilongjiang Transport Development, you can compare the effects of market volatilities on Anji Foodstuff and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Heilongjiang Transport.
Diversification Opportunities for Anji Foodstuff and Heilongjiang Transport
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anji and Heilongjiang is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Heilongjiang Transport
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 1.42 times more return on investment than Heilongjiang Transport. However, Anji Foodstuff is 1.42 times more volatile than Heilongjiang Transport Development. It trades about 0.2 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.05 per unit of risk. If you would invest 760.00 in Anji Foodstuff Co on November 7, 2024 and sell it today you would earn a total of 48.00 from holding Anji Foodstuff Co or generate 6.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Anji Foodstuff |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Heilongjiang Transport |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Anji Foodstuff and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Heilongjiang Transport
The main advantage of trading using opposite Anji Foodstuff and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.The idea behind Anji Foodstuff Co and Heilongjiang Transport Development 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |