Correlation Between Anji Foodstuff and Sinocat Environmental
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anji Foodstuff Co and Sinocat Environmental Technology, you can compare the effects of market volatilities on Anji Foodstuff and Sinocat Environmental 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 Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Sinocat Environmental.
Diversification Opportunities for Anji Foodstuff and Sinocat Environmental
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anji and Sinocat is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental 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 Sinocat Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocat Environmental has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Sinocat Environmental
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 1.03 times more return on investment than Sinocat Environmental. However, Anji Foodstuff is 1.03 times more volatile than Sinocat Environmental Technology. It trades about -0.04 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about -0.16 per unit of risk. If you would invest 830.00 in Anji Foodstuff Co on October 30, 2024 and sell it today you would lose (22.00) from holding Anji Foodstuff Co or give up 2.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Foodstuff Co vs. Sinocat Environmental Technolo
Performance |
| Timeline |
| Anji Foodstuff |
| Sinocat Environmental |
Anji Foodstuff and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Foodstuff and Sinocat Environmental
The main advantage of trading using opposite Anji Foodstuff and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Sinocat Environmental 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 Sinocat Environmental will offset losses from the drop in Sinocat Environmental's long position.| Anji Foodstuff vs. Ziel Home Furnishing | Anji Foodstuff vs. China Asset Management | Anji Foodstuff vs. Shenzhen Topway Video | Anji Foodstuff vs. Mengtian Home Group |
| Sinocat Environmental vs. Kweichow Moutai Co | Sinocat Environmental vs. Jiangsu Pacific Quartz | Sinocat Environmental vs. Shenzhen Transsion Holdings | Sinocat Environmental vs. Beijing Roborock Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |