Correlation Between Anji Foodstuff and Ningbo Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anji Foodstuff Co and Ningbo Construction Co, you can compare the effects of market volatilities on Anji Foodstuff and Ningbo Construction 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 Ningbo Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Ningbo Construction.
Diversification Opportunities for Anji Foodstuff and Ningbo Construction
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anji and Ningbo is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction 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 Ningbo Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Construction has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Ningbo Construction go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Ningbo Construction
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to under-perform the Ningbo Construction. In addition to that, Anji Foodstuff is 1.04 times more volatile than Ningbo Construction Co. It trades about 0.0 of its total potential returns per unit of risk. Ningbo Construction Co is currently generating about 0.02 per unit of volatility. If you would invest 438.00 in Ningbo Construction Co on September 4, 2024 and sell it today you would earn a total of 70.00 from holding Ningbo Construction Co or generate 15.98% 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. Ningbo Construction Co
Performance |
| Timeline |
| Anji Foodstuff |
| Ningbo Construction |
Anji Foodstuff and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Ningbo Construction
The main advantage of trading using opposite Anji Foodstuff and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Ningbo Construction 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 Ningbo Construction will offset losses from the drop in Ningbo Construction's long position.| Anji Foodstuff vs. Sunwave Communications Co | Anji Foodstuff vs. Wuhan Yangtze Communication | Anji Foodstuff vs. Jiangxi Hengda Hi Tech | Anji Foodstuff vs. Shenzhen Zhongzhuang Construction |
| Ningbo Construction vs. China Life Insurance | Ningbo Construction vs. Cinda Securities Co | Ningbo Construction vs. Piotech Inc A | Ningbo Construction vs. Dongxing Sec 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |