Correlation Between Anji Foodstuff and Sichuan Teway
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By analyzing existing cross correlation between Anji Foodstuff Co and Sichuan Teway Food, you can compare the effects of market volatilities on Anji Foodstuff and Sichuan Teway 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 Sichuan Teway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Sichuan Teway.
Diversification Opportunities for Anji Foodstuff and Sichuan Teway
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anji and Sichuan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Sichuan Teway Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Teway Food 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 Sichuan Teway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Teway Food has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Sichuan Teway go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Sichuan Teway
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 1.19 times more return on investment than Sichuan Teway. However, Anji Foodstuff is 1.19 times more volatile than Sichuan Teway Food. It trades about -0.01 of its potential returns per unit of risk. Sichuan Teway Food is currently generating about -0.03 per unit of risk. If you would invest 1,063 in Anji Foodstuff Co on August 31, 2024 and sell it today you would lose (219.00) from holding Anji Foodstuff Co or give up 20.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Sichuan Teway Food
Performance |
| Timeline |
| Anji Foodstuff |
| Sichuan Teway Food |
Anji Foodstuff and Sichuan Teway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Sichuan Teway
The main advantage of trading using opposite Anji Foodstuff and Sichuan Teway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Sichuan Teway 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 Sichuan Teway will offset losses from the drop in Sichuan Teway's long position.| Anji Foodstuff vs. Lutian Machinery Co | Anji Foodstuff vs. PetroChina Co Ltd | Anji Foodstuff vs. Bank of China | Anji Foodstuff vs. Gansu Jiu Steel |
| Sichuan Teway vs. Lutian Machinery Co | Sichuan Teway vs. PetroChina Co Ltd | Sichuan Teway vs. Bank of China | Sichuan Teway vs. Gansu Jiu Steel |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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