Correlation Between Anji Foodstuff and Liaoning Dingjide
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By analyzing existing cross correlation between Anji Foodstuff Co and Liaoning Dingjide Petrochemical, you can compare the effects of market volatilities on Anji Foodstuff and Liaoning Dingjide 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 Liaoning Dingjide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Liaoning Dingjide.
Diversification Opportunities for Anji Foodstuff and Liaoning Dingjide
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anji and Liaoning is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Liaoning Dingjide Petrochemica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Dingjide 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 Liaoning Dingjide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Dingjide has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Liaoning Dingjide go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Liaoning Dingjide
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 0.64 times more return on investment than Liaoning Dingjide. However, Anji Foodstuff Co is 1.56 times less risky than Liaoning Dingjide. It trades about -0.08 of its potential returns per unit of risk. Liaoning Dingjide Petrochemical is currently generating about -0.14 per unit of risk. If you would invest 844.00 in Anji Foodstuff Co on November 3, 2024 and sell it today you would lose (36.00) from holding Anji Foodstuff Co or give up 4.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Liaoning Dingjide Petrochemica
Performance |
| Timeline |
| Anji Foodstuff |
| Liaoning Dingjide |
Anji Foodstuff and Liaoning Dingjide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Liaoning Dingjide
The main advantage of trading using opposite Anji Foodstuff and Liaoning Dingjide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Liaoning Dingjide 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 Liaoning Dingjide will offset losses from the drop in Liaoning Dingjide's long position.| Anji Foodstuff vs. Anhui Huaheng Biotechnology | Anji Foodstuff vs. Double Medical Technology | Anji Foodstuff vs. Shanghai Rightongene Biotechnology | Anji Foodstuff vs. Zhonghong Pulin Medical |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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