Correlation Between Anji Foodstuff and Guangdong Liantai
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By analyzing existing cross correlation between Anji Foodstuff Co and Guangdong Liantai Environmental, you can compare the effects of market volatilities on Anji Foodstuff and Guangdong Liantai 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 Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Guangdong Liantai.
Diversification Opportunities for Anji Foodstuff and Guangdong Liantai
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anji and Guangdong is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai 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 Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Guangdong Liantai go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Guangdong Liantai
Assuming the 90 days trading horizon Anji Foodstuff is expected to generate 1.26 times less return on investment than Guangdong Liantai. But when comparing it to its historical volatility, Anji Foodstuff Co is 1.02 times less risky than Guangdong Liantai. It trades about 0.2 of its potential returns per unit of risk. Guangdong Liantai Environmental is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 391.00 in Guangdong Liantai Environmental on September 5, 2024 and sell it today you would earn a total of 48.00 from holding Guangdong Liantai Environmental or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Guangdong Liantai Environmenta
Performance |
| Timeline |
| Anji Foodstuff |
| Guangdong Liantai |
Anji Foodstuff and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Guangdong Liantai
The main advantage of trading using opposite Anji Foodstuff and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Guangdong Liantai 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 Guangdong Liantai will offset losses from the drop in Guangdong Liantai's long position.| Anji Foodstuff vs. Poly Real Estate | Anji Foodstuff vs. China Vanke Co | Anji Foodstuff vs. China Merchants Shekou | Anji Foodstuff vs. Huafa Industrial Co |
| Guangdong Liantai vs. Anji Foodstuff Co | Guangdong Liantai vs. Ningbo Ligong Online | Guangdong Liantai vs. Hunan Mendale Hometextile | Guangdong Liantai vs. Fiberhome Telecommunication Technologies |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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