Correlation Between Anji Foodstuff and Eastroc Beverage
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By analyzing existing cross correlation between Anji Foodstuff Co and Eastroc Beverage Group, you can compare the effects of market volatilities on Anji Foodstuff and Eastroc Beverage 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 Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Eastroc Beverage.
Diversification Opportunities for Anji Foodstuff and Eastroc Beverage
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anji and Eastroc is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage 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 Eastroc Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastroc Beverage has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Eastroc Beverage
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 1.36 times more return on investment than Eastroc Beverage. However, Anji Foodstuff is 1.36 times more volatile than Eastroc Beverage Group. It trades about 0.07 of its potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.01 per unit of risk. If you would invest 827.00 in Anji Foodstuff Co on September 4, 2024 and sell it today you would earn a total of 50.00 from holding Anji Foodstuff Co or generate 6.05% 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. Eastroc Beverage Group
Performance |
| Timeline |
| Anji Foodstuff |
| Eastroc Beverage |
Anji Foodstuff and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Eastroc Beverage
The main advantage of trading using opposite Anji Foodstuff and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Eastroc Beverage 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 Eastroc Beverage will offset losses from the drop in Eastroc Beverage'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 |
| Eastroc Beverage vs. Shaanxi Energy Investment | Eastroc Beverage vs. China Express Airlines | Eastroc Beverage vs. Wuhan Hvsen Biotechnology | Eastroc Beverage vs. Ningbo MedicalSystem Biotechnology |
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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